Circle Faces Scrutiny Over Inaction During $285M Drift Hack

The recent $285 million Drift Protocol hack has sparked debate over Circle's role in preventing the attack.

According to blockchain investigator ZachXBT, Circle failed to freeze stolen USDC as it moved through the company's own cross-chain infrastructure during the exploit. This inaction is particularly notable given Circle's aggressive response to freezing assets in unrelated cases just nine days prior.

The contrast between Circle's actions has reignited debate over how centralized stablecoin governance works in practice. Security researcher Specter noted that the attacker deliberately avoided converting funds to Tether's USDT, suggesting confidence in Circle's lack of intervention.