ZachXBT Slams USDC for Enabling North Korean Crime as FATF Issues Stablecoin Warning

Key Points

1. ZachXBT claims USDC serves as 'primary infrastructure' for North Korean IT workers to facilitate illicit payments, alleging Circle does little to detect or freeze suspicious activity.

2. FATF reports $51 billion in on-chain fraud and scam activity in 2024, with stablecoins playing a prominent role in illicit finance.

3. North Korean actors use fake identities to secure remote IT jobs, stealing cryptocurrency to fund weapons programs, with one case involving $900,000 in stolen crypto.

4. Recent enforcement actions include the DOJ seizing $225.3 million in USDT linked to scams and investigations into Cambodia-based platforms supporting money laundering.

5. Nearly 100 countries are working on Travel Rule legislation to improve AML and CFT standards in crypto transactions.