ZachXBT: Circle Did Not Freeze 420M$ USDC, Including GMX Hack

Onchain detective ZachXBT claims that Circle, the issuer of the USDC stablecoin, has not frozen approximately 420 million dollars worth of illegal fund flows since 2022 or blacklisted wallet addresses. In 15 hack and scam cases, including North Korea (DPRK) state-linked hackers, minimal action has been taken or none at all.

Source: ZachXBT

Details of 9 Million Dollar USDC Flow from GMX DEX Hack

In the July 2025 GMX detailed analysis hack, attackers withdrew 9 million dollars in USDC. According to ZachXBT, Circle did not isolate these funds. Oracle manipulation in GMX’s V2 protocol disrupted price feeds, leading to USDC drainage from liquidity pools. In technical analysis, oracle delays (latency exploits) caused losses of up to 20%.

Drift Protocol Hack: 232M USDC and 200M+ Potential Exploitation

A 232 million dollar USDC flow has been detected from Wednesday’s Drift Protocol hack; attackers converted USDC to ETH through over 100 transactions. According to the latest DRIFT futures news, the protocol carries over 200 million dollars in potential exploitation risk (onchain data). Circle’s silence is accused of ignoring onchain traces bearing the fingerprints of the DPRK-linked Lazarus Group.

Source: Lookonchain

Circle’s Inaction in Cetus DEX and Other 15 Cases

In the May 2025 Cetus DEX hack, 200 million dollars in USDC was converted to ETH. The total of 420 million dollars covers only major cases; the actual figure may be higher. ZachXBT notes that Circle produces good products and that he holds USDC himself, emphasizing that the lack of action over three years, despite law enforcement requests, has caused harm. No response from Cointelegraph.

GMX Price: Support Resistance and Downtrend Analysis

GMX price at $6.09, down -3.32% in 24h. RSI 42.01 (neutral), Supertrend bearish, below EMA20 $6.3859. Strong supports:

• S1: $6.0445 (⭐⭐⭐ 76/100, -0.91% distance)
• S2: $5.2700 (⭐⭐ 65/100, -13.61%)

Resistances: R1 $6.1279 (+0.46%), R2 $6.3917 (+4.78%). Post-hack volatility is deepening the downtrend with ETH detailed analysis correlation.

Circle’s Past Actions and DeFi Responsibility Debate

Circle researched reversible USDC transactions in September 2025 and had frozen Tornado Cash addresses. However, ZachXBT argues that this passivity in these cases is raising questions in the crypto community about the responsibilities of centralized stablecoins. As DPRK hacks target DeFi, the advantage of onchain traceability is not being utilized.

Technical Lessons from DeFi Hacks

Common pattern: Oracle exploits and liquidity drains. TWAP (Time-Weighted Average Price) protections are insufficient in protocols like GMX/Drift. Recommendation: Multi-sig freezer modules and AI-based anomaly detection. The community is citing Tether’s aggressive freezing policies as an example.