Circle Internet (NASDAQ:CRCL) CEO Jeremy Allaire clarified the company's policy on freezing USDC wallets, stating that such actions are only taken at the direction of law enforcement or courts. This approach contrasts sharply with rival Tether, which has been known to freeze funds linked to hacks within hours. Critics, including blockchain investigator ZachXBT, argue that Circle's compliance with legal processes has allowed over $420 million in stolen funds to remain unaddressed since 2022. Notable incidents include the Drift Protocol hack, which resulted in losses of up to $280 million. Despite the criticism, some experts defend Circle's policy, arguing that allowing arbitrary freezes would undermine the principles of decentralized finance (DeFi). Following these discussions, Circle's stock surged by 9%, testing critical resistance levels after a period of decline.