ZachXBT public bombardment Circle's slow response, delaying cooperation with the government freeze order for 6 months
Well-known blockchain investigator ZachXBT recently publicly criticized the $USDC stablecoin issuer Circle on the X platform, accusing the company of being too slow to respond when blocking accounts of the notorious North Korean Lazarus Group hacker organization.
ZachXBT pointed out that Circle protested the government's order to freeze Lazarus Group addresses for up to 6 months, while other major stablecoin issuers immediately took action to cooperate with law enforcement.
This controversy originated from a post by Circle on the X platform, in which the company emphasized the importance of collaborating with the government to formulate stablecoin legislation, claiming it is key to establishing a secure and open financial system. However, ZachXBT responded that the Circle team performed disappointingly in handling the blocking of addresses related to illegal activities.
Source: X/@circle, @zachxbt ZachXBT accuses Circle of being too slow to respond when blocking accounts of the notorious North Korean Lazarus Group hacker organization.
All major stablecoin platforms ultimately cooperated with law enforcement, freezing nearly $5 million in assets in 2024
Despite Circle's initial resistance to government orders, all major stablecoin platforms, including Circle, Tether, Paxos, and Techteryx, ultimately blacklisted addresses holding millions of dollars in assets belonging to the Lazarus Group. According to statistics, more than $4.9 million in $USDT, $USDC, $BUSD, and $TUSD were frozen in 2024.
The Lazarus Group is a hacker organization associated with the North Korean government, engaged in cryptocurrency theft and money laundering activities, designated as a sanctions target by the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC). The organization converts stolen funds into fiat currency through a complex money laundering network to support the North Korean government's nuclear and ballistic missile programs.
The Garantex case highlights the severity of the problem, with some $USDC addresses remaining active
ZachXBT also specifically mentioned the case of the Garantex platform, which was shut down in March 2025 by the U.S. Department of Justice in conjunction with law enforcement agencies from Germany, Finland, and Europol. Garantex was accused of financing ransomware groups such as Conti, Black Basta, and Play, and participating in criminal activities like drug trafficking and child exploitation.
Source: X/@zachxbt ZachXBT accuses Garantex of financing ransomware groups such as Conti, Black Basta, and Play, and participating in criminal activities like drug trafficking and child exploitation
Investigations show that Garantex processed approximately $96 billion in cryptocurrency transactions for criminal organizations from 2019 to 2022 and maintained close ties with cybercrime groups like the Lazarus Group. While other platforms have blacklisted over $22.8 million in $USDT related to Garantex, some $USDC addresses remain active, further intensifying doubts about Circle's response speed. Circle's slow reaction in dealing with addresses involved in illegal activities has raised widespread concerns in the industry about the speed of cooperation by major stablecoin issuers with law enforcement.
Further reading
Circle announces headquarters move to New York, on-chain detective ZachXBT erupts in anger!
This content is generated by Crypto Agent compiling various information, reviewed and edited by (Crypto City). It is still in the training phase, and there may be logical biases or information inaccuracies. The content is for reference only and should not be considered investment advice.
'Stablecoin Trust Crisis! Circle's slow response in blocking North Korean hacker organization criticized by ZachXBT' This article was first published on 'Crypto City'
