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USDC freeze controversy after Drift exploit and stablecoin issuer responsiveness

April 5, 2026Sjuul | AltCryptoGems, ZachXBT, James Rule XRP

Sjuul, ZachXBT, and others argue Circle markets USDC as compliant with freezing powers, yet Drift exploit funds were not frozen quickly, intensifying debate about stablecoin controls and enforcement coordination.

Do you understand what's happening with the "most regulated" stablecoin in crypto..
their own terms say they can freeze any address they suspect of illicit activity..
Law enforcement submitted freeze requests to four stablecoin issuers: Circle, Tether, Paxos, and Techteryx for two addresses in relation to the report.
Sjuul | AltCryptoGems
ZachXBT
James Rule XRP
usdcsecuritycomplianceusdcusdt

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