A convincing fake announcement claiming that Circle had launched a tokenized gold and silver trading platform briefly fooled large parts of the crypto community on Christmas Eve, highlighting how sophisticated holiday-period scams have become.
The press release, which circulated widely across social media and crypto PR channels, falsely stated that Circle had unveiled a new service called “CircleMetals,” offering tokenized precious metals backed by USDC liquidity. Circle later confirmed the announcement was entirely fraudulent and warned users not to interact with any related websites or wallet prompts.
Key takeaways
A fake press release falsely claimed Circle launched a tokenized gold and silver platform.
The scam used real Circle branding and fabricated executive quotes to appear legitimate.
Users were urged to connect wallets, a common tactic used to drain funds.
Circle confirmed the announcement was fake and urged heightened vigilance.
The incident underscores rising scam sophistication during holiday periods.
How the Scam Gained Traction
What made the fake announcement particularly effective was its attention to detail. The release closely mirrored Circle’s branding and included fabricated quotes attributed to CEO Jeremy Allaire, lending it a veneer of authenticity. The platform name, “CircleMetals,” was carefully chosen to imply an official connection without explicitly using Circle’s registered brand.
The announcement described a service offering 24/7 swaps between USDC and supposed gold and silver tokens labeled GLDC and SILC, allegedly supported by commodities-linked liquidity. Users were incentivized with promises of rewards paid in a token called CIRM — a token that does not appear on major crypto data platforms.
Wallet Connections Raise Red Flags
The now-offline website encouraged visitors to connect their crypto wallets to begin trading. Security experts consistently warn that this is one of the most dangerous steps users can take on unverified platforms, as malicious smart contracts or permissions can allow attackers to siphon funds without further interaction.
Independent checks found no evidence that the GLDC or SILC tokens exist, nor any indication that recognized financial institutions were involved in backing the platform. These inconsistencies quickly raised alarms once the announcement came under closer scrutiny.
Circle Responds and Clarifies
After reports of the scam spread, Circle issued a public warning on X, urging users to verify all announcements through its official communication channels. The company stressed that legitimate product launches are always announced on its primary social media accounts and official website — neither of which referenced CircleMetals.
Circle also advised users to be especially cautious when asked to connect wallets, noting that this is a common attack vector used in phishing and drain-wallet schemes.
How the Fake Release Spread
The fraudulent announcement was initially distributed through multiple crypto-focused PR services and briefly picked up by some reputable outlets before being pulled. Reports indicate that a PR firm named FinaCash attempted to distribute the release through Chainwire, which removed the content after additional compliance checks flagged issues with its legitimacy.
The episode illustrates how scammers increasingly exploit trusted distribution channels, not just social media posts, to push false narratives into the market.
A Broader Warning for the Holiday Season
The incident echoes warnings previously issued by the Federal Bureau of Investigation, which has cautioned that crypto scams tend to spike during holidays. According to the FBI, attackers are increasingly using artificial intelligence, realistic branding, and time-sensitive pressure tactics to exploit distracted users.
Security professionals emphasize a simple rule: never connect a wallet or sign a transaction unless the platform has been independently verified through official sources.
As tokenization narratives continue to gain traction, the fake CircleMetals episode serves as a reminder that credibility can be fabricated — and that skepticism remains one of the most valuable tools in crypto.
