ZachXBT: Circle's failure to freeze over $230 million in stolen Drift funds after approximately six hours is "unacceptable."

CoinFeed reported on April 13th that ZachXBT, a blockchain analyst, stated during discussions with traders and commentators regarding USDC freezing authority that there are no regulations prohibiting USDC issuer Circle from freezing related funds after a hacking attack. He called the claim that "issuers cannot freeze funds" "fabricated" and contradicted Circle's terms of service, which reserve the right to freeze funds. ZachXBT believes that for a large-scale security incident like the Drift Protocol incident that impacted the ecosystem, Circle's failure to freeze over $230 million in related funds within approximately six hours is "unacceptable." However, he also emphasized that freezing authority should not be abused based solely on indirect on-chain connections.