ZachXBT accused Circle of mistakenly freezing 16 wallets - ForkLog: cryptocurrencies, AI, singularity, the future

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2026-03-26 07:06:49

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# ZachXBT Accuses Circle of Wrongful Freezing of 16 Wallets

Circle has blocked 16 wallets as part of a civil lawsuit in the United States. However, on-chain researcher ZachXBT discovered that these addresses belong to entities unrelated to the case.

He examined the activity of the affected companies and found that they are not connected in any way.

“A basic analyst could determine within minutes that these are operational business wallets, judging by the thousands of transactions they process,” the expert wrote.

According to the researcher, the lawsuit is “sealed.” Circle had no legitimate grounds to freeze the stablecoins.

The NY civil case is sealed and they have provided absolutely ZERO basis to freeze all of these business addresses.

Aaron Nathan from Willkie Farr is the unknown plaintiffs lawyer.

The expert witness is liable.
The judge is liable.
Circle is liable.

In my 5+ yrs of…

— ZachXBT (@zachxbt) March 25, 2026

“In over five years of investigations, this is arguably the most incompetent freeze I’ve seen. This is what happens when decision-making about blocking is handed over to some random federal judge instead of establishing your own procedures,” ZachXBT noted.

The crypto community supported the criticism of USDC issuer. Wallet developer Taylor Monahan said the freeze was “not the first and not the last.”

It’s always been this way for Circle.

If you can convince a US federal court to sign off on a freeze then the funds will be frozen.

This most often comes up when Circle REFUSES to freeze uncommingled stolen funds that come directly from the victim.

Their non-decision making…

— Tay 💖 (@tayvano_) March 24, 2026

“No accountability. No transparency. No way to protect your rights,” she emphasized.

As of writing, Circle has not commented on the incident. According to ZachXBT, the company unfreezed one wallet without explanation. The researcher noted that market participants are awaiting official clarifications.

Recall that on March 24, USDC issuer’s shares plummeted by 20%. The decline was driven by concerns related to the latest version of the Clarity Act.

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