ZachXBT Blasts Circle Over Delayed Crackdown on Illicit Crypto Addresses
Crypto's watchdog just called out the stablecoin giant—and the industry's watching every move.
Slow Roll or Strategic Pause?
ZachXBT isn't mincing words. The blockchain investigator publicly slammed Circle for dragging its feet on blacklisting suspicious addresses. While other protocols freeze funds within hours, Circle's response time stretches into days—sometimes longer. That gap gives bad actors a window to move illicit funds, convert assets, or vanish entirely.
Compliance or Complicity?
Circle's USDC dominates dollar-pegged transactions, handling billions daily. Every delayed action risks legitimizing dirty money flows. Critics argue that sluggish compliance isn't just inefficient—it's borderline negligent. Meanwhile, Circle's transparency reports highlight cooperation with authorities but skip mentioning response-time metrics.
Finance's Old Habits Die Hard
Maybe traditional finance's 'move slow and break things' approach infected crypto's native giants. Or perhaps profit protection outweighs purity promises. Either way, when a stablecoin behemoth hesitates on security, the whole ecosystem feels the tremor—proving some legacy habits are harder to shake than a middling hedge fund's performance fees.
Garantex Case
ZachXBT also highlighted the OFAC-sanctioned Garantex platform, which the U.S. Department of Justice (DOJ) shut down in March 2025. Authorities from the U.S., Germany, Finland, Europol, and other law enforcement agencies collaborated in the operation.
Garantex allegedly funded ransomware groups such as Conti, Black Basta, and Play, and engaged in drug trafficking, child exploitation, and robbing a U.S. blockchain platform of $22 million. Between 2019 and 2022, it processed around $96 billion in crypto for criminal organizations and had ties to cyber gangs like Lazarus Group and Mega Dark Market.
Over $22.8 million in USDT linked to Garantex was already blacklisted by other platforms, but some USDC addresses are still active. The delayed response by Circle has raised concerns about the speed at which major stablecoin issuers act against illicit activity.
Also Read: ZachXBT Reveals North Korean Crypto Hackers’ Modus Operandi
