A US court ordered Circle to blacklist Zama's cUSDC contract, freezing ~$12.6M in funds, likely catching many in the “crossfire” of a civil suit against a DAO
Quick Take — A federal judge ordered Circle to blacklist Zama's confidential USDC (cUSDC) contract on Friday night, freezing about $12.6 million.
The Block Zack Abrams
Related Coverage
- NEWTON AC/DC FUND L.P. v. Ermilov (5:26-cv-05055) DC FUND L.P. v. Ermilov … · Docket updates for NEWTON AC
- Circle Freezes $12.6 Million in Zama's Confidential USDC Contract on Ethereum The Merkle News · Will Izuchukwu
- Zama Users Lose Access to $12.6M USDC After Circle Executes Court-Ordered Blacklist Bitcoin News · Jamie Redman
- Circle freezes Zama's USDC contract, locking $13M amid rug pull allegations Crypto Briefing
- Circle Freezes $12.6M in Zama's cUSDC Contract After Court Order in Overnight Finance Suit Blockonomi · Brenda Mary
- $12.6 Million in Zama cUSDC Frozen Following Circle Blacklist Action Coinpedia Fintech News · Nidhi Kolhapur
- Circle freezes $12.6M of USDC linked to privacy protocol Zama Cointelegraph · Vince Quill
- Circle Freezes $12.6 Million in Zama's cUSDC Contract: ZachXBT Coinpedia Fintech News · Rizwan Ansari
- Circle Freeze on Zama's Confidential USDC Locks $12.6M of User Funds in DeFi ‘Crossfire’ The Defiant
- Court Order Forces Circle to Freeze $12.6M USDC Linked to Zama Privacy Protocol Blockonomi · Trader Edge
- Circle Blacklists Zama Protocol Address, Freezing $12.6M In User Funds - Details Bitcoin Insider · Semilore Faleti
Discussion
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@randhindi
Rand
on x
We are investigating the cUSDC contract freeze. I will update here as the situation progresses.
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@randhindi
Rand
on x
Thanks to @zachxbt, we found the root cause and will be taking the appropriate actions to unblock the situation. Tldr; this has nothing to do with Zama, or privacy. The issue stems from an address related to the Overnight Finance hack, which deposited over ~$12.5m USDC into our
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@xbtoshi
@xbtoshi
on x
everyone is missing the actual red alert. circle didn't just freeze a user's eoa. they blacklisted a live smart contract. the precedent is terrifying. if an issuer can nuke an entire protocol just because one tainted wallet deposited funds, then defi composability is dead. your
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@xbtoshi
@xbtoshi
on x
circle just blacklisted @zama's cusdc contract. 12.6m of user funds instantly frozen. fully homomorphic encryption means absolutely nothing when the underlying asset has a master kill switch. zero transparency, same playbook as the 16 wallet freezes from march. wrapping fiat [ima…