Blockchain analyst ZachXBT has accused USDC stablecoin issuer Circle of turning a blind eye to suspicious transactions connected to North Korea. According to him, North Korean IT workers are widely using USDC to generate revenue, with the amounts reportedly reaching tens of millions of dollars. The comment came just as news broke that Circle has applied for a banking license in the United States.
Allegations of Hypocrisy and Ignoring Violations
ZachXBT criticized Circle's claim of “full regulatory compliance,” calling the situation a “supercycle of crimes that no one cares about.” He emphasized that Circle has neither frozen nor tracked the transactions, despite clear signs of abuse.
Social media users asked whether the analyst believes it would be better to switch to RLUSD - a token issued by Ripple. However, he rejected the idea, explaining that he still trusts Circle, Paxos, and Tether more. According to him, unlike Ripple, these companies have real user bases. He added that Ripple is building its reputation on distorted information about partnerships and the illusion of growth.
Security Issues at Coinbase
ZachXBT frequently exposes vulnerabilities among major crypto players. In March 2025, he highlighted a series of attacks targeting Coinbase users. At that time, hackers stole more than $46 million from linked wallets by using fake interfaces and address spoofing. This occurred during a surge of activity in the crypto market, when interest in platforms and transactions was especially high.
Read Also:
- G7 Leaders Prepare Response to North Korea’s Cryptocurrency Attacks
- North Korea Expands Blockchain Espionage in EU and UK
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