In an alarming turn of events, Circle, the issuer of the popular USDC stablecoin, has disavowed a fraudulent press release announcing the launch of a new trading platform for tokenized gold and silver. The misleading announcement, which surfaced on December 24, 2025, featured Circle branding and falsely cited executives from the company. A spokesperson for Circle confirmed the information was “not real,” urging users to remain cautious.
Fake Platform Promoted on Christmas Eve
The deceptive communication, released on Christmas Eve—a day when many businesses operate with reduced staff—claimed that the platform, named "CircleMetals," would facilitate continuous swaps between USDC and fictional gold (GLDC) and silver (SILC) tokens. These purported tokens were said to be backed by liquidity linked to COMEX, the commodity exchange. The announcement also notably included an attractive offer for users to earn "1.25% in $CIRM rewards" for participating in swaps. However, CoinDesk's investigations revealed that no evidence supported the existence of either GLDC or SILC tokens, and the name CIRM appeared to be unlisted on major cryptocurrency data aggregators.
Following the controversy, the website promoting the service was taken down along with all indicators of legitimacy. CoinDesk's scrutiny also pointed out the risks of connecting personal wallets to unverified platforms, as this could expose users to potential hacks and theft.
Details of the Fraudulent Announcement
The misleading press release was spread through various crypto-focused public relations networks. It included claims that executives, including CEO Jeremy Allaire, had endorsed the project. However, a Circle spokesperson clarified to CoinDesk that this release and the platform were entirely fabricated. In a follow-up communication on X (formerly Twitter), Circle warned users to exercise heightened vigilance when approached with requests to connect their wallets to unfamiliar platforms.
The documentation surrounding the fake announcement—initially posted on a community forum that has since been deleted—was later circulated by distributors and appeared on several websites. A spokesperson for Chainwire, the PR agency involved, indicated that they were not the original distributor but acted swiftly to remove the bogus announcement once compliance checks confirmed its inauthenticity.
Circling Back to Security and Vigilance
In the wake of this incident, Circle's warnings have prompted discussions within the cryptocurrency community regarding safety and security. Users are urged to verify the credibility of platforms before engaging in any transactions or sharing their wallet information. The exchange also emphasized the need for individuals to double-check any communication or requests that seem suspicious, especially during holiday periods when job responsibilities may be less stringent.
Context on the Cryptocurrency Market
The fraudulent announcement comes amid a year of fluctuating performance in the cryptocurrency market. Despite significant regulatory advancements and institutional interest, many large-cap layer-1 tokens struggle with stagnant or negative returns. A recent report analyzed the divergence between network usage and token performance, revealing that while institutional milestones were achieved and total value locked (TVL) in DeFi ecosystems increased, many tokens failed to reach their potential due to overall market conditions.
Crypto Scams Continue to Evolve
In another alarming incident in the cryptocurrency space, a user reportedly lost $50 million in a sophisticated "address poisoning" scam. This technique involved a scammer sending a small amount of cryptocurrency—often referred to as "dust"—to the victim's wallet. This misleading transaction led the victim to copy the scammer's address inadvertently, resulting in the transfer of nearly $50 million in USDT to the fraudulent wallet.
The victim, now in a desperate bidding situation, has taken to publishing an onchain message demanding the majority of the stolen funds be returned within 48 hours. Furthermore, they are offering a $1 million bounty for the return of their crypto and have threatened legal action if the money is not restored.
The cumulative effect of these events highlights the increasing sophistication of scams in the cryptocurrency market, showcasing the critical need for awareness and prevention strategies among users.
Closing Thoughts
With the cryptocurrency landscape continuing to grow and evolve, incidents of fraud like the CircleMetals fake platform and sophisticated scams like address poisoning underscore the essential need for vigilance and verification in financial dealings. Users are reminded to take precautions to protect their assets and ensure the legitimacy of platforms before engagement.
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