$USDC 🧊 USDC: The Stablecoin That Can Freeze You

You have probably already heard that the $USDC is backed 1:1 with the dollar and is regularly audited. But what almost no one mentions is: it can also be frozen — literally or even wiped from your wallet.

Circle, the issuing company of USDC, has total control over the smart contract that governs the stablecoin. This means that, unlike Bitcoin, your $USDC can be blocked or wiped out at the company's discretion.

In the USDC code, there are administrative functions such as:

function blacklist(address user) – prevents an address from using USDC.

function freeze(address user) – blocks all USDC transactions from an address.

function wipeFrozenAddress(address user) – wipes USDC from a frozen address.

Yes, that’s right: the company can erase your funds if your address is put on the “blacklist.”

✅ And this is not a theoretical power — it has already been used. In 2020, Circle froze US$ 100,000 from a user following a request from authorities, due to suspicion of involvement in fraudulent activities.

🔎 With this, I ask you: is this security or censorship disguised as protection? Why should there be a crypto that can be blocked or even wiped from your account by a centralized institution?

The truth is that Circle is subject to the rules of the U.S. financial system. It is registered, audited, and follows anti-money laundering (AML) and counter-terrorism financing (CFT) laws.

This makes USDC more reliable for businesses and institutions, which need to operate within legality — with traceability and reversibility, if necessary. Furthermore, it clarifies the rules regarding its use, guaranteeing predictability for businesses.

🤔 But what is the advantage for you?

For regular users, if your stablecoin is stolen and the case goes to court, it can be recovered.

But it also brings risks: just one misinterpretation or indirect involvement is enough for your funds to be blocked.