US EditionCircle Won't Freeze Stolen USDC Without Court Order, CEO Points Out - Circle Internet Group (NYSE:CRCL)
Jeremy Allaire said Circle treats USDC as a regulated product and freezes wallets only when authorities direct it.
- CEO Jeremy Allaire defended Circle's USDC freeze policy, stating the company only acts upon legal requests from authorities, emphasizing that "Circle has a very, very clear performance obligation under the law."
- Criticism intensified after Drift Protocol suffered a suspected North Korea-linked exploit earlier this month, resulting in losses of up to $280 million as roughly $230 million in USDC moved across chains.
- Blockchain sleuth ZachXBT argued that Circle's inaction across over a dozen cases since 2022 let over $420 million escape, while rival Tether blacklisted stolen funds in exploits affecting Ledger and Remitano.
- Omid Malekan, an adjunct professor at Columbia Business School, warned that allowing issuers to freeze funds without legal backing undermines decentralized finance, arguing "a single executive inside a single corporation decides" what constitutes law.
- This approach reflects Circle's strategy to align closely with regulators, maintaining its position within the traditional financial system as shares surged 9% after bottoming near $55-$60.
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13 Articles
Circle Internet Group Stock Surges 9.5% to $108 on Crypto Momentum and Q1 Earnings Anticipation
NEW YORK — Shares of Circle Internet Group Inc. climbed sharply in early trading Tuesday as renewed enthusiasm for stablecoins and cryptocurrency adoption lifted the issuer of the USDC token, pushing the stock to $108.05 amid expectations for strong first-quarter results next month.
Circle: Still A Buy After The Drift Heist (NYSE:CRCL)
This article was written by Follow I analyze securities based on value investing, an owner’s mindset, and a long-term horizon. I don’t write sell articles, as those are considered short theses, and I never recommend shorting.I was initially interested in a career in politics, but after reaching a dead-end in 2019 and seeing the financial drain this posed, I choose a path that would make my money work for me and protect me from more setbacks. T…
Circle CEO Defends Inaction on Drift Hack, Seeks Liability Protection
During the “Circle in Seoul” conference, Jeremy Allaire, CEO of Circle, confirmed that the firm will only freeze its USDC stablecoins upon the order of law enforcement or a judicial mandate. The executive justified this decision following the recent $280 million hack suffered by Drift, which was not addressed unilaterally by the issuing company. This measure arises amidst an ongoing debate regarding the role of crypto companies in the face of cr…
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