TechFlow News, May 30: In response to Circle’s blacklisting of the cUSDC contract, Zama issued an official statement clarifying that this freeze is not a sanction targeting Zama Protocol.
According to Zama, Circle’s compliance system previously flagged the wallet address of an external depositor. Because this address held some funds within the cUSDC contract, the entire contract was automatically placed under the standard “holding freeze” procedure.
Zama emphasized 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 stepped in and is collaborating with relevant parties to isolate the flagged address and advance the unfreezing process. The team stated it will restore access to cUSDC funds for all unaffected participants as soon as possible.
Earlier on-chain data indicated that approximately $12.6 million worth of funds were impacted by the freeze, sparking broad market discussion regarding the relationship between privacy protocols and centralized stablecoin issuers.
