Circle’s USD Coin (USDC) is being accused of being exploited by some North Korean IT groups for money laundering with tens of millions of USD through this stablecoin, while Ripple and the RLUSD stablecoin are also embroiled in controversies regarding reliability and development.
MAIN CONTENT
USDC has been accused of being exploited by North Korea for illegal payments amounting to tens of millions of USD.
Ripple and stablecoin RLUSD are questioned about their growth due to campaigns that are more paid than based on real users.
USDT and USDC still lead the stablecoin market with a market cap exceeding 263 billion USD.
Is Circle’s USDC really being exploited for illegal activities?
On-chain investigator ZachXBT stated that USDC is used by North Korean IT groups to trade tens of millions of USD, but Circle has almost no control over these cash flows. Although Circle claims to comply with regulations, they have not taken steps to freeze or monitor suspicious transactions.
ZachXBT calls this a criminal cycle causing the stablecoin market to be exploited 'nonchalantly', raising serious concerns about digital financial security.
They all have real users, while Ripple does not; they use paid contracts to fake their growth recognition.
ZachXBT, On-chain expert, 1/7/2025, Twitter
This issue is directly related to the activities of the Lazarus hacking group sponsored by the North Korean state, which has carried out many large-scale cryptocurrency thefts. G7 countries are closely coordinating to prevent cyber crimes from North Korea.
Why are Ripple and stablecoin RLUSD suspected of reliability?
ZachXBT believes that Ripple lacks a genuine user base and relies on paid relationships to create the impression of growth for stablecoin RLUSD, making it less reliable compared to USDC or USDT.
Although RLUSD is promoted as a stablecoin with collateral assets issued by a reputable U.S. partner, according to ZachXBT, the lack of authenticity in its development strategy has diminished investor confidence.
I trust Circle, Paxos, or Tether much more than Ripple.
ZachXBT, On-chain expert, 1/7/2025, Twitter
Additionally, XRP – Ripple's native token, has benefited positively from a partial victory in the lawsuit with the U.S. SEC, maintaining a price of around $2.20 with a 24-hour trading volume increasing by 116% to $4.12 billion.
How do USDT and USDC dominate the stablecoin market?
The stablecoin market is expanding with a total market cap exceeding 263 billion USD and a 24-hour trading volume over 62.4 billion USD. Tether's USDT leads with a market cap of over 157 billion USD, followed by Circle's USDC with over 61 billion USD.
Stablecoin Market Capitalization (billion USD) 24h Volume (billion USD) Usage Status USDT (Tether) 157 Not disclosed precisely Leading the stablecoin market USDC (Circle) 61 Not disclosed precisely Ranked second, expanding its use RLUSD (Ripple) 0.455 Not disclosed precisely In the early development stage, small value compared to competitors.
While USDT and USDC retain most investor confidence, RLUSD is still a new player in the market and faces many questions about its scale and transparency.
The impact of allegations on Circle's stock and reputation
Amid controversies, Circle's CRCL shares have faced strong selling pressure, declining 28% over the past week. Circle is applying for a trust bank license in the U.S. to manage USDC reserves. CRCL shares are currently fluctuating around $181.29.
Investors and regulators are closely monitoring Circle's movements, especially in the context of the increasing trend of cryptocurrency and stablecoin usage.
Frequently Asked Questions
Is USDC safe from exploitation by North Korea? According to On-chain expert ZachXBT, USDC still has a base of real users and is issued by Circle – a reputable organization, although there is a need to improve cash flow management.
What is Ripple RLUSD and is it reliable? RLUSD is Ripple's new stablecoin, currently in the early development stage and is suspected of being developed through paid campaigns rather than natural users.
How do USDT and USDC differ? USDT has a much larger market cap, is accepted by more investors and a wider cryptocurrency ecosystem, while USDC is valued for its transparency and compliance.
What is the reason for the recent sharp decline in CRCL price? Selling pressure has increased due to concerns about legal issues related to stablecoin management and risks from illegal activities, while Circle is applying for a new banking license.
How does North Korea's Lazarus group affect the cryptocurrency market? Lazarus is a state-sponsored hacking group known for large-scale cryptocurrency thefts, threatening global cybersecurity and finance.
Source: https://tintucbitcoin.com/zachxbt-rlusd-ripple-khong-nguoi-dung-that/
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