CircleMetals Exposed: The Fake Tokenized Metals and Rewards Scandal That Rocked Crypto

Another day, another 'innovation' in crypto finance turns out to be built on air. CircleMetals promised the moon—tokenized precious metals with juicy rewards—but delivered little more than digital fool's gold.

The Illusion of Asset-Backed Security

Forget vaults filled with bullion. The supposed metal reserves backing these tokens appear to have existed primarily in marketing materials and investor imaginations. The platform's entire value proposition hinged on a foundational claim that now looks dangerously thin.

Rewards That Were Too Good to Be True

The high-yield rewards program, a major draw for depositors, operated like a classic Ponzi scheme—paying old investors with money from new ones. When the music stopped, the promised returns vanished faster than a trader's confidence during a flash crash.

The Regulatory Gray Zone Exploited

CircleMetals navigated the murky waters of digital asset regulation with precision, exploiting gaps between traditional commodity oversight and nascent crypto frameworks. It's the old finance playbook: find the loophole, run the scheme, and hope the regulators are still figuring out their own filing system.

The collapse exposes the perennial tension in crypto—between revolutionary potential and the age-old human capacity for fraud. It serves as a brutal reminder: in the rush to tokenize the world, some builders are more interested in minting money than creating real value. Just another reminder that in crypto, sometimes the only thing 'backed' by assets is the founder's new Lamborghini.

TLDR

• A fraudulent press release falsely claimed Circle launched a platform for tokenized gold and silver trading.
• The release promoted fake tokens and asked users to connect wallets, posing security risks.
• Circle has confirmed the announcement is fake and warned users to verify requests carefully.
• ChainWire distributed the misleading release, but it was later retracted after compliance checks.

A fraudulent press release, distributed on Christmas Eve, falsely claimed that Circle, the issuer of the USDC stablecoin, launched a new platform called CircleMetals. The release announced the platform as a service that WOULD enable 24/7 swaps between USDC and purported tokenized gold (GLDC) and silver (SILC) tokens. It also mentioned rewards for using the platform, including a suspicious $CIRM token. However, Circle confirmed the announcement was a fake, issuing a warning to users not to engage with the platform.

Fake Announcement and Misleading Details

The fake press release used Circle’s branding and quoted executives, including Circle’s CEO Jeremy Allaire. It claimed that CircleMetals would allow users to swap USDC for GLDC and SILC, tokens that were supposedly backed by COMEX-linked liquidity. The release also promised 1.25% rewards in $CIRM for transactions on the platform. However, CoinDesk was unable to verify the existence of these tokens or any financial institution backing them.

Circle told CoinDesk that a press release claiming it had launched a platform called “CircleMetals,” offering swaps between USDC and purported tokenized Gold and silver, is not real. The release used Circle branding and quoted executives including CEO Jeremy Allaire, but a Circle…

— Wu Blockchain (@WuBlockchain) December 24, 2025

The press release was distributed by ChainWire, a PR agency that later retracted the post after conducting compliance checks. The initial blog article appeared on a community forum and was shared on other websites. The misleading information caught the attention of some crypto users, prompting Circle to clarify the situation.

Circle Warns Users of Security Risks

Following the discovery of the fake press release, Circle issued a warning to users, urging them to remain cautious. “Please be alert and vigilant — verify the legitimacy of requests before taking action, especially when asked to connect your wallet,” the warning posted on X (formerly Twitter) read. Connecting a wallet to unverified or suspicious platforms can result in a security risk, as malicious actors can drain users’ funds. Circle’s spokesperson also confirmed that the website linked to the fraudulent release was not affiliated with the company.

The fraudulent release included a call to action, encouraging users to connect their wallets to swap for the tokenized metals. This kind of action is considered dangerous, as users can easily fall victim to phishing attacks or scams. Circle’s warning to verify the legitimacy of any platform is particularly crucial in this case, given the potential risks associated with interacting with unverified sites.

ChainWire and FinaCash Involvement

Although ChainWire distributed the misleading press release, it was not the first PR agency to do so. A separate agency, FinaCash, initially approached ChainWire with the story. After further checks, ChainWire removed the post.

However, by then, the press release had already spread across the crypto community, leading to confusion and potential security threats. The rapid spread of such misinformation highlights the need for users to be diligent and cautious when interacting with unverified platforms in the crypto space.

The situation underscores the importance of conducting thorough checks on new services or announcements in the crypto world. With the growing number of scams and fraudulent platforms, users must remain vigilant and skeptical of unsolicited requests or announcements that ask for wallet connections or personal information.