Investors at Risk as Circle Claims Tokenized Gold and Silver Swaps are Fraudulent

Investors at Risk as Circle Claims Tokenized Gold and Silver Swaps are Fraudulent

A misleading press release claimed Circle launched a platform for trading gold and silver tokens, but Circle confirms the announcement is false, urging caution against scams.

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Circle has disavowed a press release claiming the launch of a platform for trading tokenized gold and silver called CircleMetals, describing it as fraudulent. The announcement, issued on December 24, coincided with a time when many U.S. businesses are closed or functioning at reduced capacity, leading to reduced response times.

The release purported to enable 24/7 exchanges between USDC and tokens labeled GLDC and SILC, allegedly backed by COMEX-linked liquidity. Users were encouraged to swap tokens and earn "1.25% in $CIRM rewards," though no evidence of the CIRM token's existence was found. CoinDesk confirmed that the website linked to the press release has been removed and that no legitimate financial institutions appear to be involved.

A spokesperson for Circle warned users on X to remain cautious and verify the authenticity of requests before connecting their wallets, emphasizing the risks of engaging with unverified sites. The misleading information was also disseminated via crypto-focused PR channels and initially appeared on a now-deleted community forum.

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