"The lawsuit charges Circle Internet Financial with knowingly permitting the attackers, reportedly tied to North Korea's government, to offload $230 million of their spoils over the course of several hours by using Circle's own stablecoin USDC and its blockchain bridge CCTP, instead of freezing the funds."
"Rather than focus on how the exploit began, the complaint targets what allegedly happened after the theft, placing Circle's infrastructure at the center of the dispute."
"The case against Circle could influence how courts treat stablecoin and bridge operators during active breaches, potentially redefining issuer duties as the lawsuit advances."
Circle Internet Financial is facing a class action lawsuit regarding its alleged failure to freeze stolen USDC following the Drift Protocol exploit. The lawsuit questions whether Circle had a legal duty to act after the breach, focusing on the movement of stolen funds through its Cross-Chain Transfer Protocol. The case could redefine the responsibilities of stablecoin issuers and bridge operators during security breaches, highlighting the broader implications for legal accountability in the crypto market.
Read at news.bitcoin.com
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