Circle Freezes $611,000 in USDC on Ethereum

On September 26, Circle blacklisted an Ethereum address, rendering $611,000 in USDC non-transferable. This action, executed via a function call within the USDC smart contract, prevents the funds from being moved regardless of the wallet or exchange used. The capability to freeze assets is a core feature of the USDC contract and is now a regulatory requirement for licensed U.S. stablecoin issuers under the July 2025 GENIUS Act. Unlike Tether, which can destroy blacklisted funds, Circle currently limits its enforcement to freezing assets upon legal or law enforcement requests.