$1 Billion in $USDC Frozen After Treasury Order

Circle has complied with a U.S. Treasury order to freeze $1 billion in USDC tied to suspected money laundering via Tornado Cash. The move shocked the DeFi world, with protocols like Uniswap, Sushiswap, and Curve affected. MakerDAO’s DAI briefly depegged, dropping to $0.96. Critics argue this sets a dangerous precedent for centralized stablecoins. Bitcoin $BTC proponents hailed the incident as proof of the need for decentralized assets. Circle defended its actions as "lawful compliance." Will trust in stablecoins ever recover?