10 months ago
Stablecoin issuer Circle sent emails to customers stating that idiosyncratic user accounts would beryllium phased out.
Stablecoin issuer Circle volition adjacent retired user oregon idiosyncratic accounts connected November 30, according to emails received by Circle customers connected October 31. In an email to Cointelegraph, the stablecoin issuer confirmed that it is closing the accounts but confirmed that concern and organization “Mint” accounts volition stay available.
On the greeting of October 31, crypto idiosyncratic Evanss6 posted an representation to X (formerly Twitter) of an email that Circle customers allegedly received. The email stated that idiosyncratic accounts are being closed “as portion of Circle’s strategical review.” The lawsuit was told that “wiring and minting functionalities” would nary longer beryllium supported and that the relationship would beryllium closed connected November 30.
In an email to Cointelegraph, a Circle typical confirmed that the accounts are being unopen down but that concern and organization accounts volition stay open:
“Circle is phasing retired enactment for bequest user accounts and has notified idiosyncratic consumers of this decision. Account closures bash not use to concern oregon organization Circle Mint accounts.”Related: Circle launches ‘points-to-crypto’ programme with Taiwan convenience store chain
On X, immoderate crypto users speculated astir the crushed for Circle's decision. Crypto sleuth Adam Cochran suggested that Circle’s reserves whitethorn beryllium getting drained by a “network of idiosyncratic accounts” that are operating arsenic “KYC mules” oregon money-laundering intermediaries, hence the request to adjacent these accounts down.
Honestly my idiosyncratic stake is that the TUSD/USDT rotation into USDC that has been draining their reserves has travel from a web of user accounts - which is wherefore it can't beryllium pinned down.
KYC mules isn't precisely a caller conception - truthful wouldn't astonishment maine if that's the strategic…
Crypto trader tmnxeq offered a antithetic hypothesis, suggesting that the accounts whitethorn beryllium unopen down arsenic portion of a “cost-cutting/ restructuring exercise.” In its statement, Circle referred to idiosyncratic accounts arsenic “legacy user accounts,” which seems to connote that they were nary longer being utilized arsenic overmuch arsenic they had previously.
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