ZachXBT: Circle Missed $420M in Fraud—15 Cases Since 2022

- On-chain investigator alleges Circle failed to freeze $420 million from 15 major hacks since 2022. - Accusations reignite debate over centralized providers' role in combating crypto crime. On April 3, 2026, a post on X (formerly Twitter) by on-chain investigator ZachXBT accused Circle of failing to freeze approximately $420 million in illicit funds. The issuer of the USDC stablecoin allegedly missed these funds across 15 major fraud and hack cases since 2022. ZachXBT, who is recognized within cryptocurrency circles for his detailed investigations, asserted that Circle has the necessary infrastructure to act but alleged the company demonstrated minimal or delayed intervention. ZachXBT highlighted several prominent incidents. In the Drift Protocol hack, he reported that $232 million in stolen USDC remained unfrozen while attackers moved the funds through over 100 transactions in a six-hour window. Following the Cetus DEX hack in May 2025, Circle blacklisted $200 million in illicit USDC only after attackers converted it to Ether. ZachXBT made similar claims about the GMX DEX hack in July 2025, where attackers allegedly relocated millions without immediate action. In addition, he stated that during the February 2025 Bybit hack, Circle failed to act proactively, which permitted further movement of stolen funds. In another example, ZachXBT pointed to the January 2025 SwapNet hack, which involved $3 million in stolen USDC. He alleged the funds remained untouched in a hacker-controlled wallet for two days while law enforcement and private entities reportedly sought Circle's intervention, but the company took no immediate measures. On April 3, on-chain investigator ZachXBT wrote on X (formerly Twitter) that these lapses have "real consequences for real people," and he emphasized that the true scope of unfrozen funds could exceed the publicly estimated $420 million. Despite his pointed criticisms, ZachXBT clarified that he does not intend to harm Circle as a company, acknowledging he personally utilizes USDC. As a result, his findings have reignited debates within the crypto community about the responsibilities of centralized service providers in combating financial crime. As of the initial reports, Circle has not issued a public response to the allegations. As of April 4, 2026, 08:08 UTC, USDC (USDC) is trading at $1, with a 0.006% change in 24-hour trading volume, according to Binance.