Odaily Planet Daily reports: On-chain detective ZachXBT has published a “Circle Inaction Archive” on X, accusing the stablecoin issuer Circle of over $420 million in potential compliance failures since 2022. According to his findings, Circle failed to promptly freeze funds in several major security incidents, including Drift Protocol (April 2026, $280 million loss), SwapNet (January 2026, $16 million loss), and Cetus Protocol (May 2025, $223 million loss). Similar delays or failures to freeze funds were also observed in incidents involving Mango Markets, Nomad Bridge, Ledger’s supply chain attack, and GMX.
In contrast, peers such as Tether and Paxos have responded more quickly in some cases. ZachXBT noted that despite Circle’s ability to freeze and blacklist assets and its oversight by U.S. regulators, it has been slow to respond to multiple law enforcement and industry requests, resulting in significant financial losses. He emphasized that the available statistics cover only publicly disclosed major incidents, and the actual scale may be even higher, raising questions about who Circle is truly serving in its compliance efforts.