- USDC (USD Coin): A popular U.S. dollar-backed stablecoin used for payments and trading.
- RLUSD: Ripple’s new U.S. dollar-backed stablecoin, still in its early stage.
- Stablecoin: A type of cryptocurrency designed to keep a stable value, usually tied to the U.S. dollar.
- Circle: The company behind USDC, now applying to become a licensed U.S. bank.
- Lazarus Group: A North Korean hacker group linked to large crypto thefts.
- G7: A group of the world’s top economies working together on global issues, including crypto crime.
On-chain investigator ZachXBT has raised alarms about the misuse of Circle’s USD Coin (USDC) by North Korean IT operatives. He claims that tens of millions of dollars have been funneled through the stablecoin with little to no intervention from the issuer. However, he also went on to hit Ripple’s RLUSD over its user base.
This occurs as Circle recently applied to establish a national trust bank in the United States to oversee its reserves. Circle had a successful initial public offering (IPO) in June, as the company was valued at around $18 billion.
What happened?
In a series of posts on X, ZachXBT accused Circle of ignoring illegal use of its stablecoin, USDC. He called it “a crime super cycle where no one cares.” ZachXBT said North Korean IT workers are using USDC to get paid, and that recent transactions added up to tens of millions of dollars.
When someone asked why ZachXBT still supports USDC even though North Korea uses it, he said RLUSD is “asset-backed and from a so-called trusted American company” but still can’t be trusted because Ripple grows in a fake way.
This issue is part of bigger concerns about North Korea’s cybercrime. The country’s Lazarus Group, a government-backed hacking group, has been linked to major crypto thefts. As more people use crypto, G7 countries are working together to stop North Korean cyberattacks.
All this is happening while Circle’s stock, CRCL, is under pressure. Its price has fallen 28% in the past week, and it last traded at $181.29. Investors are watching to see how U.S. regulators will react to Circle’s plan to become a licensed bank.
In short, the situation shows the growing worries about how stablecoins like USDC can be misused by groups such as North Korea’s hackers. While Circle tries to become a trusted bank, it faces pressure to prove it can stop illegal activity. This highlights the need for stronger rules and better action to prevent crypto crimes as the market keeps growing.