TechFlow News, March 25: According to on-chain investigator ZachXBT, Circle recently froze the USDC balances in 16 hot wallets belonging to multiple enterprises. This freeze stems from an ongoing U.S. civil lawsuit whose details remain undisclosed; information about the case was confirmed directly to ZachXBT by one of the affected enterprises.
ZachXBT noted that these wallets—used by exchanges, casinos, and foreign exchange platforms—appear unrelated to each other, raising concerns that Circle did not sufficiently vet the freeze request. He further stated that the frozen wallets serve as operational hot wallets used by businesses to process large volumes of user transactions, and that the freeze has already disrupted their day-to-day operations.
