Circle Rejects Fake Tokenized Metals Press Release; Tether and Circle Show Divergent Enforcement Practices

Source: CryptoTale Original Title: Circle Rejects Fake Press Release on Tokenized Metals Claims Original Link: https://cryptotale.org/circle-rejects-fake-press-release-on-tokenized-metals-claims/

Fake Press Release Incident

A press release issued on Christmas Eve claimed that Circle had launched a platform for tokenized gold and silver trading. The statement described nonstop swaps between USDC and metals tokens and cited executive comments. The claim drew attention because it appeared during a U.S. holiday period when many companies operated with reduced staffing.

Circle later confirmed that the announcement was false. A spokesperson said the platform, branded as CircleMetals, has no connection to the company and was never approved or developed internally.

Unverified Tokens and Platform Claims

The release described a service offering 24/7 swaps between USDC and alleged gold and silver tokens labeled GLDC and SILC, with claims of liquidity linked to the COMEX market. No independent evidence supported these assertions.

The statement also promised users a reward of “1.25% in $CIRM.” That token could not be identified on major cryptocurrency data platforms or public registries.

Links in the release directed users to a website that has since been taken offline. Reviews found no indication that GLDC or SILC tokens were ever issued, nor that any regulated financial institution was involved.

Before removal, the website prompted visitors to connect their digital wallets to enable swaps. Industry security guidance warns against connecting wallets to unverified platforms, as such actions can expose users to theft or unauthorized transfers.

The fake release also used Circle branding and claimed to quote senior executives, including CEO Jeremy Allaire. Circle denied that any executive made or approved those statements.

Circle confirmed it had no association with the site, press release, or tokens described, and posted a warning urging users to verify the legitimacy of requests before taking action.

Stablecoin Enforcement Practices: Tether vs. Circle

Between 2023 and 2025, Tether froze approximately $3.3 billion worth of USDT, while Circle froze roughly $109 million in USDC—showing a substantial gap in enforcement volume.

Tether blacklisted 7,268 wallet addresses across multiple blockchains, including Ethereum and Tron, with more than 2,800 freezes coordinated with U.S. law enforcement. Over half of the frozen USDT was on Tron.

A significant difference is that Tether can burn tokens and issue new ones. In certain instances, frozen USDT associated with crime has been destroyed, with new tokens issued to compensate victims or authorities.

Circle adheres to a narrower legal regime, blacklisting 372 addresses totaling $109 million. Circle does not place holds on funds unless directed by court instructions, regulators, or well-recognized regulatory obligations such as sanctions and AML/CTF laws.

Circle also does not burn and reissue tokens, unlike Tether. Once USDC is locked, it can only be released by legal approval—a procedure strictly linked to regulatory recognition.

These differences indicate divergent philosophies: Tether is predisposed to prevent losses proactively, while Circle restrains action only to explicit legal orders.