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Look, Coinbase getting conditional approval from the OCC as a National Trust Bank? That’s a massive game changer. It means they’ve moved past state rules and now hold federal level power.
it’s pretty obvious where this is going. USDC isn’t just some stablecoin anymore; it’s becoming the ‘safest digital dollar’ backed by a federal custodian. This basically completes the ‘federal‑grade infrastructure’ that giants like BlackRock need to pour their capital in without a second thought.
but man, looking back... it’s still hard to swallow how they crushed UST through those malicious attacks and locked up Do Kwon. The guy built a world‑class platform that could’ve rivaled Tether, but the USDC faction basically targeted him and took him out. The truth will come out eventually.........
The same people who tore down Do Kwon’s Terra ecosystem are now wrapping up USDC as the 'safest digital dollar' ever. But you know what’s ironic? That so‑called 'rock‑solid federal protection' is actually going to be their biggest fatal
🔍 On-chain sleuth ZachXBT alleges Circle failed to freeze illicit USDC funds in 15 cases.
According to a report by ZachXBT cited by Cointelegraph, Circle had "several hours or days" to act on $420 million in allegedly illicit USDC transactions since 2022 but did not. The accusations center on what the investigator calls compliance failures.
ZachXBT just dropped receipts on Circle and $420 million in illicit funds not frozen since 2022…
But I think many are missing the important message here:
The real issue is that centralized stablecoins are fundamentally broken and that we have strayed too far from Web3 ideals
Using centralized stablecoins that can be frozen, burned, or wiped at any given time. Seriously?
Basically just a CBDC in disguise. What are we doing?!?
Anyways, the Drift exploit is the headliner with $285 million in stolen USDC moved through Circle's own CCTP bridge for 6+ hours during US business hours.
Easy to see and easy to track and nothing done
While the same company froze 16 unrelated business wallets last month for a sealed civil case
Instantly with no public explanation 🤨
So the freeze button works. It just works selectively and is controlled by a single entity.
Here's what most are missing though
Circle isn't just being hypocritical. They're trapped in a lose lose situation.
Freeze too much? Centralized dystopia
Freeze too little? Enabling crime
They freeze when there's clear legal authority
Court orders
Sealed cases
Government pressure
But a real-time exploit? That's messy and possibly a liability risk
Does that excuse $420 million in inaction? No.
But the real issue is that we built an entire ecosystem dependent on centralized gatekeepers and we don’t think twice about it
Don’t know about you but thats not the Web3 I signed up for!
1/ Welcome to the Circle $USDC files.
$420M+ in alleged compliance failures since 2022, including fifteen cases of the US-regulated stablecoin issuer taking minimal action against illicit funds. https://t.co/OiWZz5MrVM
USD Coin is a stablecoin brought to customers by Circle and Coinbase. It is an open source, smart contract-based stablecoin. True financial interoperability requires a price stable means of value exchange. CENTRE’s technology for fiat-backed stablecoins brings stability to crypto. The initial implementation is USD Coin (USDC), an ERC-20 token creating possibilities in payments, lending, investing, trading and trade finance — and the ecosystem will grow as other fiat currency tokens are added.
