Zama Responds to the cUSDC Freeze Incident: It’s Not a Protocol Sanction—Funds Are in the Process of Being Unfrozen

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Deep Tide TechFlow News, May 30th, regarding the cUSDC contract being blacklisted by Circle, Zama's official response states that this freeze is not a sanctions measure against Zama Protocol.

According to Zama's explanation, Circle's compliance system previously flagged an external depositor's wallet address. Because this address held some funds within the cUSDC contract, the entire contract was automatically included in the standard "holding freeze" process.

Zama emphasizes that this incident is a collateral effect triggered by the compliance system, not an action taken by Circle against the protocol itself.

Currently, Zama's legal team has intervened, working with relevant parties to isolate the flagged address and advance the unfreezing process. The team stated that they will restore access to the cUSDC funds for all unaffected participants as soon as possible.

Earlier on-chain data shows that the frozen funds amount to approximately $12.6 million, sparking widespread discussion about the relationship between privacy protocols and centralized stablecoin issuers.

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