Blockchain investigator ZachXBT has publicly criticized Circle, the issuer of the USDC stablecoin, for a perceived lack of response following a security incident involving its Cross-Chain Transfer Protocol (CCTP).
Attackers leveraged the CCTP protocol to move stolen Ethereum assets originating from a breach on the decentralized finance (DeFi) platform GMX. The exploit specifically utilized Circle’s infrastructure designed for cross-chain asset transfers.
The incident underscores significant vulnerabilities inherent in cross-chain bridges within the DeFi ecosystem. ZachXBT’s critique highlights the potential for such technologies, when exploited, to facilitate the laundering of illicitly obtained funds.
Concerns center on Circle’s purported silence and inaction since the breach occurred. This lack of engagement fuels worries about accountability and the robustness of security measures protecting widely adopted cross-chain solutions against determined cyber threats.