Centralized Controls Squeeze DeFi Composability: Circle Freezes $12.6M in Zama Privacy Protocol
Centralized Controls Squeeze DeFi Composability: Circle Freezes $12.6M in Zama Privacy Protocol
Publish Date: 2026-05-31 12:59:00
Source Domain: www.fxleaders.com
Circle blacklists Zama’s cUSDC smart contract following a federal court order in the Overnight Finance lawsuit. Read our macro review…
Written by:
Arslan Butt
•
Sunday, May 31, 2026
•
3 min read
•
Last updated: Sunday, May 31, 2026
Add an article to your Reading List
Register now to be able to add articles to your reading list.
” aria-hidden=”true”
Quick overview
- Circle froze $12.6 million worth of Zama’s confidential USDC following a federal court ruling to blacklist the cUSDC smart contract.
- The lawsuit against Overnight Finance claims that its creator diverted over $15 million from the project’s treasury before a community vote.
- Zama’s CEO stated that over 99% of the funds in the confidential USDC contract came from the disputed deposit, and the protocol plans to temporarily cease services.
- The case raises questions about the role of privacy tools in stablecoin infrastructure and the implications of Circle’s blacklisting powers.
Circle froze $12.6 million worth of Zama’s confidential USDC following a federal court’s Friday night, May 29, 2026, ruling to blacklist Zama’s confidential USDC (cUSDC) smart contract. The freeze occurred Saturday morning, UTC. It is noteworthy that this protocol is not directly involved in this case.
A group of Overnight Finance (OVN) governance token holding funds filed suit in the U.S. District Court for the…
