Circle Criticized for Delays as It Requires Legal Orders to Freeze USDC

USDC, a U.S. dollar stablecoin issued by Circle, is widely used in trading and DeFi. Circle CEO Jeremy Allaire argues that wallet freezes must be based on orders from law enforcement agencies or courts. The principle affects both the speed of efforts to stop hackers from laundering money and broader questions of asset autonomy and decentralization.

Circle has recently faced criticism for failing to immediately freeze USDC addresses linked to hackers who made off with millions of dollars. Allaire said the company would not unilaterally block wallets without a court or law enforcement order. Reports did not disclose the exact date of the incident or the amount lost, leaving the dispute centered on whether legal procedures delayed asset recovery.