ZachXBT Alleges North Korea Ties to USDC? Alleges Misuse of U.S. Banking License

ZachXBT Alleges North Korea Ties to USDC? Alleges Misuse of U.S. Banking License

According to popular blockchain investigator ZachXBT, the sanctioned state of North Korea is using Circle’s (NASDAQ: CRCL) native stablecoin USDC and is doing “NOTHING” to freeze the activity.

This announcement comes as the stablecoin company files for a US banking license following its successful IPO in June. The CRCL stock has already fallen 28% in the last week, indicating considerable selling pressure.

USDC Allegedly Used for Illegal Payments

ZachXBT, a blockchain investigator, claims that Circle’s USD Coin (USDC) is a vital infrastructure utilized by North Korean IT personnel to execute illegal payments. The claim comes just after the stablecoin startup sought a US State Bank License, following a successful IPO on Wall Street in June.

While claiming to have strict compliance rules, ZachXBT also reprimanded the USDC issuer for not taking steps to identify and halt the transaction. “I can point out high eight figures in recent volume,” ZachXBT asserted, implying that millions of dollars had moved uncontrolled across the network. The investigator went on to say that no one would care at this stage since it is a “crime supercycle.”

North Korea’s Crypto Exploits in the Spotlight

North Korea’s Lazarus Group has already been responsible for multiple crypto thefts, including those targeting some of the world’s major cryptocurrency exchanges. As cryptocurrency use grows globally, the G7 countries debated how to cope with North Korea’s crypto hacking empire.

Community Reaction and Ripple Comparison

Responding to ZachXBT’s comment, one XRP fan wonders if it would be preferable to use RLUSD instead, given that it is supported by the parent company Ripple. ZachXBT responded with the following:

“I have far more faith in Circle, Paxos, and Tether than in Ripple. They all have organic users, but Ripple does not, and theirs are the result of portraying commercial collaborations as adoption.”

What’s Next for CRCL Stock?

So what happens next to CRCL Stock? Following a spectacular IPO on the NYSE in June, Circle stock (CRCL) soared all the way to $300, over ten times its initial price of $31. However, the stock has recently been under selling pressure, with large players such as Cathie Wood selling from the top. Over the last week, the CRCL stock price has fallen by 28% and is now trading at $180.

Analysts See Long-Term Potential

However, Bernstein analysts feel that it is time to purchase the dips, and CRCL stock might rise another 30% to $230. “As the leader of the stablecoin market and for investors wishing to learn more about Circle’s long-term revolutionary payments story, CRCL is a long-term must-hold,” according to the experts.

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