Blockchain investigator ZachXBT has criticized Circle, the issuer of the USDC stablecoin, for not acting quickly enough to blacklist accounts belonging to the infamous North Korean Lazarus Group.
In a recent X post, Circle emphasized the need for collaborating with governments and crafting stablecoin legislation in order to have a safe, open financial system. The company shared that 12 years ago, it set out to create the “internet of money,” aiming to make digital payments as seamless and secure as sending information online.
Replying to this, ZachXBT noted certain moves from the Circle team and criticized them for being slow to block certain addresses linked to illegal activity. ZachXBT pointed out that the company fought government orders to freeze Lazarus Group addresses for six months, while other major stablecoin issuers acted immediately.
All major stablecoin platforms, including Circle, Tether, Paxos, and Techteryx, did eventually blacklist addresses holding millions of dollars from the Lazarus Group. For example, more than $4.9 million in USDT, USDC, BUSD, and TUSD was blocked in 2024.
Garantex Case
ZachXBT also highlighted the OFAC-sanctioned Garantex platform, which the U.S. Department of Justice (DOJ) shut down in March 2025. Authorities from the U.S., Germany, Finland, Europol, and other law enforcement agencies collaborated in the operation.
Garantex allegedly funded ransomware groups such as Conti, Black Basta, and Play, and engaged in drug trafficking, child exploitation, and robbing a U.S. blockchain platform of $22 million. Between 2019 and 2022, it processed around $96 billion in crypto for criminal organizations and had ties to cyber gangs like Lazarus Group and Mega Dark Market.
Over $22.8 million in USDT linked to Garantex was already blacklisted by other platforms, but some USDC addresses are still active. The delayed response by Circle has raised concerns about the speed at which major stablecoin issuers act against illicit activity.
Also Read: ZachXBT Reveals North Korean Crypto Hackers’ Modus Operandi
