Circle, the issuer of USDC, is expanding its offerings with cirBTC, a new wrapped Bitcoin designed for institutional investors. This move aims to provide a secure and neutral alternative to existing wrapped Bitcoin solutions like BitGo’s wBTC and Coinbase’s cbBTC, which collectively hold over 208,000 BTC. CirBTC will initially launch on Ethereum, followed by Circle’s Arc blockchain and Circle Mint platform. Simultaneously, Circle faces scrutiny following accusations from onchain investigator ZachXBT, who alleges the company failed to promptly freeze USDC associated with numerous hacks and illicit flows totaling over $420 million since 2022, including incidents linked to North Korea’s Lazarus Group. ZachXBT claims Circle denied freeze requests even with court orders pending. While Circle defends its compliance procedures, the allegations raise concerns about the effectiveness of its onchain monitoring and response capabilities. The launch of cirBTC is seen as a strategic move to attract institutional capital, leveraging Circle’s established network and USDC’s credibility, while the USDC freeze controversy casts a shadow on its operational practices.
Source Articles
This article is based on analysis of 6 source articles from our news database.
