A fake “CircleMetals” platform claiming to let users swap USDC for tokenized gold and silver briefly circulated on Dec. 24 — but Circle, the issuer of USDC, says the project was a fraud.
What happened
- On Christmas Eve a press release (distributed through crypto PR channels) announced “CircleMetals,” a service supposedly offering 24/7 swaps between USDC and tokenized gold (GLDC) and silver (SILC). The release also promised a 1.25% reward in a token called CIRM for users who swapped.
- The timing — published on a day when many U.S. businesses are closed or slow to respond — and the use of Circle branding and quotes attributed to CEO Jeremy Allaire made the release look plausible at first glance.
- CoinDesk contacted Circle, and a Circle spokesperson confirmed the site and product are fake. CoinDesk could not verify the existence of GLDC, SILC or CIRM on major data aggregators, and found no evidence of backing from COMEX-linked liquidity or involvement by any legitimate financial institution.
- The fake site invited visitors to connect their wallets to perform swaps — a risky move on an unverified site because malicious contracts can drain connected wallets. The website and the press release have since been removed.
How it spread
- The blog-style press release was initially posted to a community forum, then syndicated via crypto PR wires. A PR agency called FinaCash approached Chainwire with the story; after additional compliance checks the post was taken down, Chainwire told CoinDesk.
- After CoinDesk’s reporting, Circle posted a warning on X (formerly Twitter) urging users to “be alert and vigilant — verify the legitimacy of requests before taking action, especially when asked to connect your wallet.”
Correction note
- A correction to early coverage clarified that Chainwire wasn’t the first distributor of the release and updated the timeline; it also confirmed the promotional site was taken down and added Circle’s X warning.
Takeaways for users
- Always verify new product announcements via official company channels (company website, verified social accounts).
- Don’t connect your wallet to unknown sites. If you must interact, use read-only tools or create a separate wallet with minimal funds.
- Check token listings on reputable aggregators and confirm institutional claims (e.g., COMEX linkage) before trusting a tokenized-asset offering.
This incident is a reminder that bad actors will use realistic branding and holiday timing to try to dupe crypto users. Stay skeptical and double-check before you click “connect.”
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