According to The Block, Circle CEO Jeremy Allaire responded to criticism over Circle’s failure to freeze the stolen USDC from Drift during a press conference in Seoul, South Korea, stating that Circle fulfills its legal obligations by freezing wallets only upon instruction from law enforcement or courts, and making such decisions independently would constitute a “significant moral dilemma.” He also revealed that Circle is engaging with U.S. lawmakers regarding the Clarity Act to establish a “safe harbor” mechanism for stablecoin issuers under extreme circumstances, emphasizing that any such authority must be explicitly granted by legislation, not determined unilaterally by companies.
Circle CEO Explains USDC Freezing Policy in the Drift Hack Case
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Summary
Circle CEO Jeremy Allaire addressed backlash over the company’s refusal to freeze stolen USDC in the Drift hack during a press conference in Seoul. He stated that Circle only acts upon law enforcement or court orders, warning that unilateral freezes present a “major moral dilemma.” Allaire also noted ongoing discussions with U.S. lawmakers regarding the Clarity Act, which could establish a regulatory policy framework for stablecoin issuers. He emphasized that any such authority must derive from legislation, not corporate action. These remarks come amid global scrutiny of stablecoin governance, including under MiCA (EU Markets in Crypto-Assets Regulation).
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