The Block founder accuses Circle of evading responsibility in hacks

Mike Dudas, founder of crypto media outlet The Block, criticized Circle (CRCL) on X, accusing the company of evading responsibility and failing to properly address security incidents like hacks. Dudas argued that USDC could become "the world's worst" stablecoin, noting how easily it can be lost. He explained that while hackers have no trouble swapping and laundering funds after an exploit, it is nearly impossible for users to recover assets lost due to mistakes. Dudas claimed Circle is attempting to shift the responsibility for freezing funds onto real-world legal structures. This, he asserted, creates a system that benefits hackers while harming ordinary users. According to Dudas, Circle is effectively avoiding decisions to freeze funds, even in clear hacking cases, to prioritize its strategic goals of achieving regulatory compliance and securing its legislative standing. He added that no one considers USDC a decentralized dollar. His comments echo similar criticisms from on-chain analyst ZachXBT, who raised concerns after funds from the Drift (DRIFT) hack earlier this month were reportedly swapped through Circle.