On-chain investigator ZachXBT has accused Circle of failing to promptly freeze over $420 million in USDC during major security incidents since 2022. In a detailed report titled "Circle Inaction Archive," ZachXBT highlighted several cases, including the Drift Protocol's $280 million loss in April 2026 and SwapNet's $16 million loss in January 2026, where Circle allegedly delayed freezing funds. Other incidents involved Mango Markets, Nomad Bridge, and GMX. ZachXBT contrasted Circle's response times with those of competitors like Tether and Paxos, who reportedly acted more swiftly in similar situations. Despite Circle's regulatory oversight and asset control capabilities, the report suggests significant compliance failures, raising concerns about the company's commitment to protecting users. ZachXBT warned that the actual extent of these issues might be greater than publicly disclosed.