Crypto News: Controversies Surrounding Circle's Delayed Action on Lazarus Group Fund Freeze
Background on Lazarus Group Fund Freeze
On September 14, blockchain investigator ZachXBT disclosed that stablecoin issuers froze nearly $5 million held by the notorious North Korean Lazarus Group after tracing the funds. Tether, Circle, Paxos, and Techteryx blacklisted two addresses containing approximately $4.96 million in assets.
Details of the Investigation
- Investigation linked to a larger laundering operation of over $200 million from crypto-related hacks between 2020 and 2023.
- Other assets include $720,000 in DAI and $313,000 in Ethereum, which remain unfrozen.
Criticism of Circle
ZachXBT expressed frustration over Circle's slow response, stating that the company took more than 4 months longer than its competitors to blacklist these funds. This delay raises concerns about Circle's priorities, as critics argue it has focused more on profits than on ensuring the safety of the crypto environment.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.