Verify a decision

{"actor":"system:backfill","investigation_id":"85d9f9dd-474a-4cb3-b2e5-3abcdd7ccf2f","kind":"publish","page_slug":"circle","published_at":"2026-05-19T15:39:36.542Z","sequence_num":1,"snapshot":{"content_type":"investigation","entity_name":"Circle","sections":[{"content":"","heading":"","severity":"medium","sources":[]},{"content":"","heading":"","severity":"medium","sources":[]},{"content":"","heading":"","severity":"medium","sources":[]},{"content":"","heading":"","severity":"medium","sources":[]},{"content":"","heading":"","severity":"medium","sources":[]},{"content":"","heading":"","severity":"medium","sources":[]},{"content":"","heading":"","severity":"medium","sources":[]},{"content":"","heading":"","severity":"medium","sources":[]},{"content":"","heading":"","severity":"medium","sources":[]}],"sources_used":[],"summary":"Circle Internet Group is the issuer of USDC, the second-largest USD-pegged stablecoin by market capitalization. Circle has faced sustained criticism from blockchain investigator ZachXBT and others for its policy of refusing to freeze USDC linked to hacks or scams without a formal court order or law enforcement mandate, which critics allege has allowed over $420 million in illicit funds to flow freely since 2022. The company went public on the NYSE in June 2025 under the ticker CRCL and received conditional OCC approval for a national trust bank charter in December 2025.","timeline":[{"date":"2013-01-01","event":"Circle Internet Group founded in Boston, Massachusetts.","source":"","source_url":"https://www.circle.com"},{"date":"2022-08-08","event":"Circle freezes USDC held in Tornado Cash wallets following U.S. Treasury OFAC sanctions designation.","source":"","source_url":"https://www.theblock.co/post/162172/circle-freezes-usdc-funds-in-tornado-cashs-us-treasury-sanctioned-wallets"},{"date":"2023-03-10","event":"Silicon Valley Bank seized by FDIC. Circle discloses $3.3 billion in USDC reserves held at SVB. USDC depegs, trading as low as $0.86.","source":"","source_url":"https://www.cnbc.com/2023/03/11/stablecoin-usdc-breaks-dollar-peg-after-firm-reveals-it-has-3point3-billion-in-svb-exposure.html"},{"date":"2023-03-13","event":"USDC fully restores $1 peg after FDIC makes all SVB depositors whole, securing Circle's $3.3 billion.","source":"","source_url":"https://www.coindesk.com/business/2023/03/13/usdc-stablecoin-regains-dollar-peg-after-silicon-valley-bank-induced-chaos"},{"date":"2024-01-11","event":"Circle confidentially submits draft S-1 registration statement to the SEC.","source":"","source_url":"https://accessipos.com/circle-stock-ipo/"},{"date":"2025-04-01","event":"Circle publicly files S-1 with the SEC to list on NYSE under ticker CRCL.","source":"","source_url":"https://www.coindesk.com/business/2025/04/01/stablecoin-giant-circle-files-for-ipo"},{"date":"2025-05-22","event":"Cetus Protocol on Sui blockchain exploited for $223 million. Approximately $61 million bridged to Ethereum via USDC; Circle allegedly blacklists wallets one month later after funds converted to Ether.","source":"","source_url":"https://www.coindesk.com/markets/2025/05/22/sui-networks-cetus-protocol-hit-in-apparent-hack-sending-token-prices-down-90"},{"date":"2025-06-05","event":"Circle IPO completes on NYSE at $31 per share.","source":"","source_url":"https://accessipos.com/circle-stock-ipo/"},{"date":"2025-06-30","event":"Circle submits application to OCC to form First National Digital Currency Bank, N.A.","source":"","source_url":"https://www.circle.com/pressroom/circle-receives-conditional-approval-from-occ-for-national-trust-charter"},{"date":"2025-07-01","event":"GENIUS Act signed into law, establishing the first U.S. federal statutory framework for payment stablecoins.","source":"","source_url":"https://www.brookings.edu/articles/next-steps-for-genius-payment-stablecoins/"},{"date":"2025-12-12","event":"Circle receives conditional OCC approval for national trust bank charter alongside Ripple, BitGo, Fidelity Digital Assets, and Paxos.","source":"","source_url":"https://www.axios.com/2025/12/12/banks-crypto-occ-charters"},{"date":"2026-01-25","event":"Swapnet exploit results in $16 million stolen, with $3 million USDC accessible for two days while freeze requests submitted by law enforcement and private investigators were allegedly denied by Circle.","source":"","source_url":"https://news.bitcoin.com/usdc-freeze-controversy-zachxbt-says-circle-froze-16-legitimate-wallets-missed-real-hacks/"},{"date":"2026-02-25","event":"OCC publishes proposed GENIUS Act implementing rules covering reserve management, redemption protocols, and operational oversight for stablecoin issuers.","source":"","source_url":"https://www.federalregister.gov/documents/2026/03/02/2026-04089/implementing-the-guiding-and-establishing-national-innovation-for-us-stablecoins-act-for-the"},{"date":"2026-03-23","event":"Circle freezes USDC in 16 legitimate business wallets including DFINITY's ckETH Minter contract in connection with sealed NY civil case 26-cv-2327. ZachXBT calls it 'the most incompetent freeze' he has witnessed.","source":"","source_url":"https://news.bitcoin.com/usdc-freeze-controversy-zachxbt-says-circle-froze-16-legitimate-wallets-missed-real-hacks/"},{"date":"2026-03-26","event":"Circle partially reverses the March 23 wallet freeze, unfreezing at least five of 16 wallets including DFINITY's ckETH Minter.","source":"","source_url":"https://www.banklesstimes.com/articles/2026/03/26/circle-partially-backs-down-unfreezes-1-of-16-controversial-usdc-wallets-zachxbt/"},{"date":"2026-04-01","event":"Drift Protocol exploited for approximately $285 million. Attackers bridge $232 million USDC via Circle's CCTP over six hours during U.S. business hours. Circle takes no freeze action.","source":"","source_url":"https://www.coindesk.com/business/2026/04/03/circle-under-fire-after-usd285-million-drift-hack-over-inaction-to-freeze-stolen-usdc"},{"date":"2026-04-02","event":"ZachXBT publicly accuses Circle of being 'asleep' during the Drift hack and labels Circle, Jeremy Allaire, and USDC 'bad actors for the industry.'","source":"","source_url":"https://www.cryptotimes.io/2026/04/02/circle-had-6-hours-to-freeze-stolen-drift-funds-it-did-nothing-zachxbt/"},{"date":"2026-04-13","event":"Circle CEO Jeremy Allaire publicly states Circle will not freeze USDC without a court order or formal law enforcement directive.","source":"","source_url":"https://www.coindesk.com/business/2026/04/13/circle-ceo-says-he-won-t-freeze-usdc-without-a-court-order-even-as-hackers-walk-away-with-millions"},{"date":"2026-04-14","event":"Class-action lawsuit filed against Circle in U.S. District Court of Massachusetts by Joshua McCollum on behalf of 100+ Drift hack victims, alleging negligence and aiding and abetting unlawful conversion of funds.","source":"","source_url":"https://www.thestreet.com/crypto/markets/circle-slapped-with-class-action-lawsuit-over-2026s-largest-hack"},{"date":"2026-04-16","event":"Tether and Solana Foundation announce $150 million recovery plan for Drift Protocol hack victims. Drift Protocol subsequently transitions its core settlement layer from USDC to USDT.","source":"","source_url":"https://www.dlnews.com/articles/regulation/drift-user-sues-circle-for-inaction-in-biggest-hack-of-2026/"}]},"v":1}