Circle Under Fire for Not Blacklisting North Korean Hacker-Linked Funds
Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...
Circle, the issuer of the USDC stablecoin, is facing scrutiny from blockchain investigator ZachXBT for its delayed action in blacklisting funds tied to the North Korean hacking group Lazarus.
ZachXBT alleges that Circle took more than four months longer than other major stablecoin issuers to block addresses linked to the notorious group, which has been involved in several high-profile cryptocurrency thefts.
The criticism follows a hack on September 11 targeting the Indonesian crypto exchange Indodax, reportedly orchestrated by the Lazarus Group.
The attack resulted in the theft of over $20 million, leading Indodax to suspend operations temporarily.
The hack has reignited concerns about the use of stablecoins in laundering stolen funds, particularly by cybercriminals like the Lazarus Group.
According to investigations, the Lazarus Group has laundered an estimated $200 million from various crypto-related hacks into stablecoins, including USDT and USDC, between 2020 and 2023.
These findings have raised alarms about the role of stablecoins in facilitating illegal activities and the responsibility of issuers like Circle to prevent such misuse.
ZachXBT’s accusations against Circle go beyond the Lazarus-linked hack, suggesting a broader failure to act swiftly in responding to DeFi hacks and exploits.
Despite having substantial resources and staff, Circle is alleged to lack a dedicated incident response team to handle such situations effectively.
The investigator’s claims come amid growing calls for stronger regulation of stablecoins and
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