🛡️ Circle vs Tether: Why Do Hackers Prefer USDC?
While the crypto community debates security, the recent $16.8 million hack of the SwapNet protocol has added fuel to the eternal dispute: who protects users better — Circle (USDC) or Tether (USDT)? 🧐
What happened?
Hackers breached SwapNet smart contracts on the Base network. Of the stolen funds, about $3 million in USDC lay on one address for hours, available for blocking. But Circle... did nothing.
Renowned on-chain sleuth ZachXBT has already labeled Circle a "bad actor" for their inaction. He posed a harsh question: "Why build projects on USDC if the issuer doesn't care about the owners' security?"
The numbers speak for themselves (AMLBot report 2023–2025):
🔴 Tether (USDT): Froze $3.3 billion across 7,268 addresses.🔵 Circle (USDC): Froze only $109 million across 372 addresses.
What's the difference in approach?
Tether operates "preemptively." They often freeze funds based on tips from analysts or clear signs of a hack, helping return money to victims through a mechanism of issuing new coins in exchange for burned ones.Circle takes a "law-abiding giant" stance. They only block wallets upon a court order or official request from US regulators. While the bureaucracy drags on, hackers have time to swap USDC for "unfreezable" ETH or run them through mixers.
The Bottom Line:
For some, Circle's approach is a guarantee that their funds won't be touched without due process (true decentralization?). For others (like ZachXBT), it's aiding criminals.
Which side are you on? Should an issuer have the right to act without court orders to save users' funds? 👇
#USDC #USDT #Circle #Tether #CryptoNews
