Circle Defends USDC Freeze Policy After Criticism

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Circle has responded to criticism over its handling of the Drift exploit, defending its ability to freeze USDC as a legal obligation—not a discretionary action. Chief Strategy Officer Dante Disparte emphasized that freezes only occur when required by law.

The response follows accusations from onchain investigator ZachXBT, who claimed Circle failed to act while stolen funds moved across chains. Circle argues that legal constraints, not unwillingness, limit how quickly it can intervene during active exploits.

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circle’s response highlights the trade-off between compliance and speed in stablecoin systems