Circle Sued Over Alleged Slow Response to $295M Hack

A recent lawsuit has been filed against Circle, the issuer of the world's second-largest stablecoin USDC, alleging that the company failed to take adequate action during a $295 million hack in April. The hackers, attributed to North Korean cybercriminals, were able to convert stolen assets into USDC using Circle's technology and services.

The lawsuit claims that Circle 'did nothing' as the attackers worked to offload their spoils, despite being aware of the exploit through social media notifications within an hour. This allowed the hackers to move $230 million worth of assets from the Solana blockchain to Ethereum, where they could not be frozen or seized.

Critics have pointed out that Circle has a pattern of inaction in similar situations, with 15 examples of hacks cited where minimal action was taken against illicit funds. The lawsuit alleges that Circle's sluggish reaction 'emboldened' hackers who would otherwise avoid freezable assets like USDC.