Circle Won't Freeze Stolen USDC Without Court Orders, CEO Says

The company behind USDC (a digital dollar) says it won't freeze stolen funds without a judge's order — even when hackers are actively stealing millions.

What's USDC? It's a stablecoin (a cryptocurrency that stays equal to $1). Think of it like digital cash that you can send instantly anywhere. Circle is the company that creates and manages USDC.

The Problem: When hackers steal cryptocurrency, they often convert it to stablecoins like USDC to move the money around. Critics say Circle should freeze these stolen funds immediately to stop thieves. Since 2022, over $420 million in stolen crypto has reportedly escaped because Circle didn't act fast enough.

Circle's Position: CEO Jeremy Allaire says his company follows strict rules. "We can only freeze wallets (digital accounts holding crypto) when law enforcement or courts tell us to," he explained. Circle wants to be seen as a legitimate financial company that follows the law, not one that makes decisions on its own.

The Debate: Circle's competitor, Tether (which makes USDT, another digital dollar), often freezes suspicious funds within hours of a hack. Some experts worry that giving companies too much power to freeze funds could harm the decentralized nature of cryptocurrency — where no single entity should have total control.

This controversy highlights a key challenge in crypto: balancing the need to stop criminals with maintaining the open, permissionless nature that makes cryptocurrency unique.

This is an AI-generated summary. Read the original article at: https://www.coindesk.com/business/2026/04/13/circle-ceo-says-he-won-t-freeze-usdc-without-a-court-order-even-as-hackers-walk-away-with-millions