A press release published on Christmas Eve claimed that Circle, the issuer of the USDC stablecoin, has launched a new platform offering tokenized gold and silver trading.
However, this is “fake,” a Circle spokesperson told CoinDesk.
The platform, launched under the name “CircleMetals”, was promoted through a press release distributed on December 24, a date when many US businesses are closed or operating at limited capacity, and response times are slow.
The release describes a new service enabling 24/7 swaps between USDC and tokenized gold (GLDC) and silver (SILC) tokens, reportedly backed by COMEX-linked liquidity. Oddly, this prompted users to swap to the platform and receive “1.25% in $CIRM rewards.” CoinDesk could not verify the said CIRM token, which does not appear to be listed on major data aggregators.
The website has since been removed. CoinDesk found no evidence to suggest that GLDC or SILC tokens exist or that any legitimate financial institution is involved.
The website asks users to connect their wallet to enable the ability to swap for said precious metals tokens. It is generally considered a bad idea to connect wallets directly to unverified websites, as malicious elements can drain the user’s wallet.
The release also used the Circle branding and claimed to quote executives including CEO Jeremy Allaire.
A Circle spokesperson confirmed to CoinDesk that the site is not genuine.
Since CoinDesk’s report, Circle has warned users on X to remain cautious. According to the post, “Please be cautious and alert – verify the validity of requests before taking action, especially when asked to connect your wallet. Double-check if in doubt.”
The press release announcing the product, distributed via some crypto-focused PR wires, included links to a swap platform that allows users to connect their addresses and offers rewards for swapping purported tokenized gold and silver tokens.
The blog article, which appears to be a press release, was originally posted on a community forum [now deleted] And then later shared by other websites and distributors. A PR agency called Fincash contacted Chainwire with the story and the post was immediately removed after further compliance checks, a Chainwire spokesperson told CoinDesk.
Correction (December 24, 20:30 UTC): It’s fair to say that Chainwire was not the first firm to distribute a press release, and adds a chronological timeline of what happened. It also updates the story to say that the website promoted by the fake release has been removed, and adds Circle’s X post to the story warning users.