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Zama's official response to the incident states that Circle's compliance system previously flagged an external depositor's wallet.
Because the wallet held funds within the contract, the entire contract was caught up in the standard hold freeze.
The official emphasized that this is collateral damage and not a sanction against the Zama protocol.
Currently, Zama's legal team has intervened, actively engaging in negotiations, and will restore access to funds for all unaffected participants as soon as possible.