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Circle CEO Addresses Controversy Over USDC Freezing in Drift Attack

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Circle CEO Jeremy Allaire commented on the debate over freezing USDC in real-world assets (RWA) news, stating the company will not act without legal grounds. The DeFi protocol Drift lost $280 million in an attack, with $230 million in USDC moved via cross-chain transfers. Critics such as ZachXBT advocate for stronger asset controls. Allaire called it an ethical dilemma but emphasized that decisions on protocol updates must follow legal procedures.

Odaily Planet Daily reports that Circle CEO Jeremy Allaire stated the company will not freeze wallet assets unrelated to legal proceedings, in response to recent controversies surrounding the Drift attack.

Previously, the DeFi protocol Drift suffered a $280 million attack, with part of the funds allegedly transferred across chains into approximately $230 million in USDC, sparking debate over whether to freeze the related assets. Allaire noted that such actions involve a "moral dilemma," but without legal grounds, Circle would not proactively freeze the funds.

The incident prompted skepticism from industry insiders, including on-chain analyst ZachXBT, who argued that the platform should implement more proactive fund management measures. (The Block)

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