Circle CEO Jeremy Allaire defended the company’s policy of freezing USDC wallets only under legal orders during a press conference in Seoul. The statement came amid community backlash following a $280 million exploit on the Drift platform, where stolen funds included $230 million in USDC. Allaire emphasized that Circle cannot act independently without official directives. The company is simultaneously expanding in South Korea through partnerships with major exchanges like Upbit and Bithumb.
Circle CEO Jeremy Allaire stated that the company does not freeze USDC wallets unless directed by law enforcement or courts. He addressed rising criticism during a press conference in Seoul on April 13, 2026.
The backlash followed concerns over Circle’s inaction in recent exploit cases. Allaire emphasized the company operates under strict legal obligations and cannot act independently on freezing funds.
He described allowing a private firm to decide such actions as a serious risk and a complex moral challenge. Criticism intensified after questions emerged around Circle’s past wallet freezes without detailed explanations.
Allaire maintained that every action taken by Circle aligns with applicable laws and regulatory directives. The issue gained momentum after decentralized finance platform Drift suffered a major exploit earlier this month.
Losses reached up to $280 million, with around $230 million in USDC among the stolen funds. Critics argued the company should have intervened and frozen those assets.
On-chain investigator ZachXBT publicly called out Circle on their response, citing a lack of definitive action. Past examples of frozen wallets were cited where circumstances did not seem identical.
Allaire was adamant that Circle could not afford to circumvent the law. He made it clear that anything other than this would bring into question the company’s objectives.
As part of its efforts, Circle has forged new relationships with South Korean partners Dunamu and Bithumb. The company has also established connections with top financial institutions like Hana Financial Group.
This occurs as South Korea progresses in passing its Digital Asset Basic Act to regulate stablecoins. Allaire said discussions with regulators have commenced and stressed that coming regulations could help pave the way for licensed firms.
If passed, Circle is planning to establish a footprint within the nation. However, they do not plan to issue a stablecoin pegged to the Korean won.
