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The stablecoin issuer was accused of freezing 16 hot wallets linked to operating businesses, including crypto exchanges and online casinos.) dollar-pegged token, wrongfully froze 16 wallets in connection with an ongoing civil legal case in the United States, according to onchain investigator and security researcher ZachXBT.
The wallets in question belonged to crypto exchanges, online casinos and foreign currency exchange businesses, which “do not appear related at all,” ZachXBT “An analyst with basic tools could have identified, within minutes, that these were operational business wallets from the thousands of transactions they process,” he said“In my 5-plus years of investigations, it could potentially be the single most incompetent freeze I have seen. This is what happens when you outsource your freezing decisions to literally any random federal judge instead of having a process.” Cointelegraph sought comment from Circle about the claims but did not obtain a response by the time of publication. “This is your 10th reminder that centrally issued stablecoins are not actually yours; they can be frozen, unlike cash,” Mert Mumtaz, founder of remote procedure call node provider Helius,Centralized stablecoins effectively give the issuer the same financial surveillance and asset freezing capabilities that a standard CBDC would provide, he said. Former US lawmaker Marjorie Taylor Greene echoed Rausis’s warning in May 2025, arguing that regulated stablecoins under the GENIUS bill are a “Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently. Read our Editorial Policy
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