Circle Ignored $420 Million in Hacks Since 2022, Says ZachXBT

- ZachXBT alleges Circle’s slow response to hacks led to over $420 million in losses. - Tether's faster fund-freezing during Drift Protocol exploit raises questions about USDC reliability. On April 3, 2026, on-chain investigator ZachXBT alleged in a post on X (formerly Twitter) that compliance failures at USDC issuer Circle contributed to over $420 million in losses since 2022. His findings highlight Circle’s delays in freezing funds tied to numerous exploits, sparking concerns about the company’s ability to safeguard assets in the decentralized finance (DeFi) ecosystem. The Drift Protocol hack exemplifies these shortcomings. On April 1, 2026, attackers exploited vulnerabilities and stole $285 million, including $230 million in USDC. Over a six-hour period, the attackers moved the stolen USDC from Solana to Ethereum using Circle’s Cross-Chain Transfer Protocol (CCTP); however, despite this prolonged transfer window, Circle failed to freeze the funds. Conversely, Cryptopolitan reported on April 2, 2026, that competitor Tether froze compromised USDT tied to the exploit within 90 minutes across multiple blockchains. ZachXBT’s investigation, dubbed the “Circle Files,” outlines a broader pattern of delays following high-profile hacks involving Bybit, Cetus Protocol, Mango Markets, and the Nomad Bridge. Citing the investigation, reports from CoinNess and AMB Crypto on April 3, 2026, stated that Circle often froze stolen USDC weeks after the exploits, by which time attackers had frequently converted or laundered the funds. For example, ZachXBT noted that after the Cetus Protocol hack, the associated wallet remained active for weeks before Circle intervened. Furthermore, ZachXBT criticized Circle’s inconsistent use of its fund-freezing mechanisms, citing the company’s March 23, 2026 freeze of 16 wallets owned by legitimate businesses under a sealed civil case. In a post on X (formerly Twitter) on April 3, he labeled this action as one of the most “incompetent” freezes he had encountered. As a result, Circle’s inconsistent responses have reignited debates about the role of centralized entities like USDC in the rapidly evolving DeFi sector and their ability to mitigate risks effectively. As of April 3, 2026, at 17:08 UTC, USDC remained pegged at $1, with a marginal 24-hour volume change of 0.003%. Meanwhile, according to the latest market metrics, Tether (USDT), also trading at $1, reported a slightly higher 24-hour volume change of 0.009%.