Circle's New Blockchain Accused of Enabling Money Laundering

Crypto investigator ZachXBT has accused Circle of building its new blockchain, Arc, to facilitate money laundering through its confidential transaction feature.

The claim comes as Circle is set to launch Arc on September 16, with a roster of eleven institutional validators, including BlackRock and Visa.

ZachXBT argues that the 'confidential transfers' feature, which hides the dollar amount of transactions while leaving sender and receiver addresses visible on-chain, is designed to allow institutions to move USDC through the chain without detection.

This would be consistent with Circle's record on compliance, as ZachXBT has previously pointed out that the company moves slowly to freeze funds it can plainly see, in contrast to its fast and broad actions against legitimate businesses in a sealed dispute.