Circle Explains Why It Didn’t Freeze Stolen USDC in the $275 Million Drift Hack

Circle’s Chief Strategy Officer Dante Disparte published a direct defense of the company’s authority to freeze USDC (USDC), naming the $270 million Drift Protocol exploit as the catalyst. The blog post and a separate X statement followed weeks of criticism from onchain investigator ZachXBT, who accused Circle of inaction while stolen funds moved through its Cross-Chain Transfer Protocol. Circle Responds to Freeze Criticism Circle framed its freeze capability as a compliance obligation rather than a discretionary tool. He wrote that USDC freezes happen only when the law compels action through a formal process. When Circle freezes USDC, it is not because we have decided, unilaterally or arbitrarily, that someone’s assets should be taken from them. It is because the law requires us to act,” wrote Disparte in a blog. The statement appeared to address ZachXBT’s earlier accusation that Circle failed to freeze stolen USDC during the April 1 exploit. Circle was asleep while many millions of USDC was swapped via CCTP from Solana to Ethereum for hours from the 9 figure Drift hack during US hours. Value was moved and nothing was done yet again.Comes days after you froze 16+ business hot wallets incompetently which is still… pic.twitter.com/T0Xwg1HIfO— ZachXBT (@zachxbt) April 2, 2026 The investigator had noted that hundreds of millions in USDC moved from Solana (SOL) to Ethereum (ETH) via CCTP during U.S. business hours without intervention. Disparte also acknowledged a tension familiar to the crypto industry. He argued that the same framework protecting holders from arbitrary interference also limits how fast an issuer can act during an active exploit. Recent events are a reminder that trust in digital assets depends on security, accountability, and the rule of law across the ecosystem.Circle is a regulated company that complies with sanctions, law enforcement orders, and court-mandated requirements. We freeze assets when… pic.twitter.com/zG0FZzCd1n— Circle (@circle) April...