Fake platform impersonates Circle, targets crypto users on Christmas eve

Earlier today Christmas Eve, the crypto community collectively fell for what turned out to be a press release distributed to spread the false claim that Circle, the issuer of the USDC stablecoin, had launched a new platform offering tokenized gold and silver trading.

The announcement, which used authentic Circle branding and fabricated quotes from company executives, has been confirmed as fake by the company.

The platform called itself CircleMetals, a name that could confuse users into assuming it was Circle, and its offerings, which were tokenized precious metals, made it an elaborate scam arrangement, as Circle has danced around the idea of bringing metals to the market.

The fraudulent release discussed a service that enabled round-the-clock swaps between USDC and purported gold tokens called GLDC and silver tokens dubbed SILC, which was backed by COMEX-linked liquidity. Users were encouraged to swap on the platform to receive rewards in a token called CIRM, which does not appear to be listed on major cryptocurrency data aggregators.

Did Circle launch a tokenized gold product?

The announcement used Circle’s official branding and included what appeared to be quotes from CEO Jeremy Allaire. The website, which has since been taken down, asked users to connect their digital wallets to enable swapping for the supposed precious metals tokens, something security experts widely consider a significant risk, as malicious actors can exploit this access to drain user funds.

As of the time of writing, Cryptopolitan did not find any evidence to confirm that GLDC or SILC tokens exist or that any legitimate financial institution is involved with the supposed platform.

Following reports of the scam, Circle warned users on X to remain vigilant, stating, “Please be alert and vigilant—verify the legitimacy of requests before taking action, especially when asked to connect your wallet. When in doubt, double-check.”

It added that all major announcements about Circle products will always be posted to Circle’s main X handles and on their official website, which wasn’t the case in this controversial post.

Fake Circle press release is taken down

The press release was distributed via several crypto-focused public relations platforms and some reputable news outlets, which have now taken the story down, initially reported on the announcement, thinking it was actually from Circle.

According to reports, a PR agency called FinaCash reached out to Chainwire to distribute the story; however, the post was removed immediately after further compliance checks, according to a Chainwire spokesperson.

The Federal Bureau of Investigation (FBI) issued a warning last year in December, stating that scammers were getting more sophisticated as they now use artificial intelligence in their operations to create fake profiles and employ pressure tactics to defraud Americans during the holiday period.

Cryptocurrency security experts say that users should never connect wallets to unverified websites and should always verify announcements through official company channels.

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