Blockchain analyst ZachXBT accused the stablecoin issuer $USDC , Circle, of facilitating illegal operations related to North Korea. According to him, North Korean IT workers are using USDC to receive payments totaling tens of millions of dollars, circumventing sanctions. In a post on X from July 1, 2025, ZachXBT criticized Circle for its lack of measures to detect and freeze such transactions, despite the company's claims of regulatory compliance. He states that the volumes of illegal transactions reach 'high eight-figure sums.'
These accusations arose against the backdrop of Circle's application for a banking license in the US and its recent IPO. ZachXBT points to systemic shortcomings in Circle's response to cybercrimes, particularly those related to the Lazarus hacking group, which has stolen cryptocurrency worth over $5 billion since 2017. The criticism highlights the gap between Circle's public image as a regulatory-compliant company and its actual actions.
This scandal may impact Circle's reputation and its plans regarding the banking license. The situation also intensifies discussions about the role of stablecoins in money laundering.
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