TechFlow reports that on May 30, on-chain investigator ZachXBT disclosed new findings indicating, following further tracking and analysis, that the frozen funds in Zama’s cUSDC contract—blacklisted by Circle—may be linked to the DeFi project Overnight Finance.
Data shows that an address deposited approximately $12.4 million in USDC into the Zama protocol on May 11, 2026; this address is believed to be associated with Overnight Finance.
Notably, Overnight Finance recently initiated a governance vote to discuss its treasury fund allocation plan. Previously, some users accused the project’s team of conducting a rug pull, sparking community controversy.
Earlier reports indicated that Circle had blacklisted Zama’s cUSDC contract address on Ethereum, freezing roughly $12.6 million in funds within the contract. Neither Circle nor Zama has provided detailed explanations for the freeze. The market is closely monitoring the specific connection between the frozen funds and Overnight Finance, as well as developments in the ongoing investigation.
