Crypto12 April, 20261 min read
Circle CEO Says USDC Wallets Freeze Only With Court Orders Amid Hack Criticism
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Circle freezes USDC wallets only with law enforcement or court orders, not during hacks. Critics cite hundreds of millions in losses due to delayed freezing actions.
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Circle's Court-Order Policy
Circle CEO Jeremy Allaire clarified that the company only freezes USDC wallets when directed by law enforcement or courts. He positioned USDC as a regulated financial product rather than a tool for immediate intervention.
This approach contrasts with rival Tether, which has repeatedly frozen funds linked to hacks within hours. Blockchain sleuth ZachXBT criticized Circle's slow approach, claiming delays have allowed over $420 million in illicit funds to escape since 2022.
Criticism and Defense
Survivors described scenes of workers pounding on locked metal doors as smoke filled the stairwells. Nasrin Begum escaped by jumping from a second-floor window. The Bangladesh Garment Workers' Federation called a nationwide strike.
Federation president Kalpona Akter said Rahman Textile had been cited for fire safety violations in 2024 but had continued operating. Labour Minister Tahmina Akhter pledged an immediate government investigation.
Supply Chain Under Scrutiny
Rahman Textile produced clothing for several European fashion brands. Hessen's compliance team had audited the factory in March. Rahman Textile owner Faisal Rahman issued a statement claiming the factory had passed its most recent safety inspection in January.
Clean Clothes Campaign spokesperson Ineke Zeldenrust told the Guardian that the audit system was fundamentally broken. Rahman was being questioned about allegations that the factory's emergency exits had been welded shut to prevent worker theft.