ZachXBT Exposes Ripple’s RLUSD as ’Ghost Token’—Circle Also Under Fire

Blockchain sleuth ZachXBT drops a bombshell: Ripple’s RLUSD stablecoin shows zero organic adoption. Circle’s USDC gets caught in the crossfire.

The 'Stablecoin' With No Pulse

On-chain data reveals RLUSD’s dirty secret—it’s propped up by synthetic transactions while real users flee. Even DeFi degens won’t touch this 'stable' asset.

Circle’s Domino Effect

The report triggers contagion fears as traders scrutinize USDC’s reserves. Another reminder that in crypto, 'full backing' often means 'fully creative accounting.'

The Bottom Line

Until regulators start checking wallets instead of PowerPoints, the stablecoin shell game continues. Place your bets—which domino falls next?

Ripple inflates RLUSD adoption?

In a series of posts on X (formerly Twitter), ZachXBT accused Circle of turning a blind eye to illicit flows, calling it “a crime super cycle where no one cares.” The On-chain sleuth stated that USDC is being widely used by North Korean IT workers to receive payments and claimed that recent related transactions reached tens of millions of dollars. ZachXBT criticized the stablecoin issuer for claiming to be “compliant” while taking no action to freeze or monitor the funds. 

Amid the controversy, one XRP supporter suggested switching to Ripple’s new stablecoin RLUSD as a potentially safer alternative. ZachXBT pushed back, stating: “I trust Circle, Paxos, or Tether infinitely more than Ripple.” He mentioned that, unlike Circle or Tether, which at least have a base of organic users, Ripple has a history of “misrepresenting paid partnerships to make it appear like adoption.”

They all at least have organic users whereas Ripple does not and theirs comes from misrepresenting paid partnerships to make it appear like adoption.

— ZachXBT (@zachxbt) July 1, 2025

When asked why he was still defending USDC despite its alleged links to North Korea, ZachXBT reiterated his position in a post. He asserted that RLUSD is “asset-backed and issued by a so-called trusted American powerhouse,” but ultimately lacks credibility due to what he characterizes as Ripple’s artificial growth tactics.

The issue ties into broader geopolitical concerns as North Korea’s Lazarus Group, a state-sponsored hacking unit, has been linked to numerous high-profile crypto heists. As crypto adoption grows, G7 countries have increasingly prioritized coordinated action against North Korean cyber operations.

The debate unfolds when Circle’s CRCL stock faces mounting selling pressure. It is down 28% over the past week. Market watchers are closely eyeing how regulators respond to Circle’s ambitions to become a licensed US bank. CRCL traded at a price of $181.29 in the last session.

USDT and USDC dominate stablecoin scene

The stablecoin market is on a surge, smashing $263 billion mark in cap and a 24 hour trading volume of over $62.4 billion. Tether’s USDT is leading the tally while holding a market cap of more than $157 billion. Circle’s USDC stands second in the tally with a cap of over $61 billion.

Ripple’s RLUSD can be seen way in the tally as it is still in its initial phase of booming. RLUSD holds a market cap of around $455 million, which looks like a tiny number in front of the leaders. However, its native coin, XRP, has gained much in recent times due to a partial win in the lawsuit against the US Securities and Exchange Commission (SEC).

XRP price remained up by 3% over the past 30 days. XRP is trading at an average price of $2.20 at the press time. Its 24 hour trading volume is up by 116% to stand at $4.12 billion.

Cryptopolitan Academy: Tired of market swings? Learn how DeFi can help you build steady passive income. Register Now