ZachXBT says Ripple’s RLUSD has no real users, hits Circle too

On-chain investigator ZachXBT has raised alarms about the misuse of Circle’s USD Coin (USDC) by North Korean IT operatives. He claims that tens of millions of dollars have been funneled through the stablecoin with little to no intervention from the issuer. However, he also went on to hit Ripple’s RLUSD over its user base.

This comes in when the USDC stablecoin issuer recently applied to establish a national trust bank in the United States in order to oversee its reserve. Circle had a successful initial public offering (IPO) in June, as the company was valued at around $18 billion.

Ripple inflates RLUSD adoption?

In a series of posts on X (formerly Twitter), ZachXBT accused Circle of turning a blind eye to illicit flows, calling it “a crime super cycle where no one cares.” The On-chain sleuth stated that USDC is being widely used by North Korean IT workers to receive payments and claimed that recent related transactions reached tens of millions of dollars. ZachXBT criticized the stablecoin issuer for claiming to be “compliant” while taking no action to freeze or monitor the funds. 

Amid the controversy, one XRP supporter suggested switching to Ripple’s new stablecoin RLUSD as a potentially safer alternative. ZachXBT pushed back, stating: “I trust Circle, Paxos, or Tether infinitely more than Ripple.” He mentioned that, unlike Circle or Tether, which at least have a base of organic users, Ripple has a history of “misrepresenting paid partnerships to make it appear like adoption.”

They all at least have organic users whereas Ripple does not and theirs comes from misrepresenting paid partnerships to make it appear like adoption.

— ZachXBT (@zachxbt) July 1, 2025

When asked why he was still defending USDC despite its alleged links to North Korea, ZachXBT reiterated his position in a post. He asserted that RLUSD is “asset-backed and issued by a so-called trusted American powerhouse,” but ultimately lacks credibility due to what he characterizes as Ripple’s artificial growth tactics.

The issue ties into broader geopolitical concerns as North Korea’s Lazarus Group, a state-sponsored hacking unit, has been linked to numerous high-profile crypto heists. As crypto adoption grows, G7 countries have increasingly prioritized coordinated action against North Korean cyber operations.

The debate unfolds when Circle’s CRCL stock faces mounting selling pressure. It is down 28% over the past week. Market watchers are closely eyeing how regulators respond to Circle’s ambitions to become a licensed US bank. CRCL traded at a price of $181.29 in the last session.

USDT and USDC dominate stablecoin scene

The stablecoin market is on a surge, smashing $263 billion mark in cap and a 24 hour trading volume of over $62.4 billion. Tether’s USDT is leading the tally while holding a market cap of more than $157 billion. Circle’s USDC stands second in the tally with a cap of over $61 billion.

Ripple’s RLUSD can be seen way in the tally as it is still in its initial phase of booming. RLUSD holds a market cap of around $455 million, which looks like a tiny number in front of the leaders. However, its native coin, XRP, has gained much in recent times due to a partial win in the lawsuit against the US Securities and Exchange Commission (SEC).

XRP price remained up by 3% over the past 30 days. XRP is trading at an average price of $2.20 at the press time. Its 24 hour trading volume is up by 116% to stand at $4.12 billion.

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