Circle, the issuer behind the USDC stablecoin, has frozen $57 million worth of USDC connected to the LIBRA team, according to on-chain data. The move, first reported by Aggr News on X, shows two transactions marked as “freezeAccount,” on the Solana blockchain.
Circle’s USDC Transfer Halt Exposes Centralized Control Behind Stablecoins
As Circle centralizes control over USDC, freezing the asset is an option built into the system. As a result, its control can be activated, when necessary, usually for law enforcement, sanctions or against suspected unlawful activity.
So far, both Circle and other official sources have not explained why the freeze was put in place. These kinds of actions usually indicate that something is suspected by the authorities.
Many cryptocurrency users still question how Circle can restrict access to users’ money. The blockchain supports security and follows regulations. However, many crypto fans dislike the changes the company makes to its operations. It shows that not all crypto assets are immune to intervention with stablecoins like USDC still having ties to real-world regulatory frameworks.
Source: X (@AggrNews)
The Unanswered Questions About LIBRA’s Frozen $57M
On-chain records make the action publicly verifiable, but they don’t tell the full story. According to sources familiar with the matter, what triggered the freeze was a response to a legal request.
Given the amount involved, this will likely attract attention from both regulators and blockchain investigators in the coming days, likely after the Bitcoin Conference 2025.
It is currently the center of attraction among industry players. This event is a reminder that even in a world built on decentralization, some tokens (especially stablecoins) come with centralized controls.
While USDC offers stability and regulatory friendliness, it can also be frozen if the issuer believes there’s a valid reason to do so. Newsy Johnson, a commentator, pointed out the oddity here. According to him, the LIBRA team leader, Hayden, isn’t wanted by police.
Also, there’s no accusation of hacking or theft against him. People bought the token willingly, knowing the risks. So, he asked, why freeze the funds? And where does the money go now? Does Circle hold it? Do users get refunds?
As more updates unfold, the crypto community will be watching closely for Circle’s official response and further clues about the LIBRA team and the frozen funds. Circle has been in the news for various reasons lately, one of which is a potential acquisition of 10% of its IPO shares by BlackRock.
Paul
Paul Adedoyin, an experienced crypto journalist who provides timely news, in-depth research, and insightful content to inform and empower his audience. He can be reached via [email protected]
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
✓ Share: