Svmuu News On-chain investigator ZachXBT released the "Circle Inaction Archive" on platform X, disclosing that stablecoin issuer Circle failed to timely freeze funds involved in multiple major security incidents. These cases include Drift Protocol (April 2026, loss of $280 million), SwapNet (January 2026, loss of $16 million), Cetus Protocol (May 2025, loss of $223 million), among others. Furthermore, similar delays or failures to execute freezes were observed in incidents involving Mango Markets, Nomad Bridge, the Ledger supply chain attack, and GMX.
In contrast, peers such as Tether and Paxos responded more swiftly in some cases. ZachXBT pointed out that despite Circle possessing freeze and blacklist capabilities and being subject to US regulation, it has still been slow to respond under multiple law enforcement and industry requests, leading to significant fund losses. He emphasized that the related statistics only cover publicly known major incidents, and the actual scale might be higher. He also questioned who Circle's compliance enforcement actually serves in practice.