{"id":260399,"date":"2026-05-31T12:59:00","date_gmt":"2026-05-31T16:59:00","guid":{"rendered":"https:\/\/news-you-need.com\/index.php\/2026\/05\/31\/centralized-controls-squeeze-defi-composability-circle-freezes-12-6m-in-zama-privacy-protocol\/"},"modified":"2026-05-31T13:20:22","modified_gmt":"2026-05-31T17:20:22","slug":"centralized-controls-squeeze-defi-composability-circle-freezes-12-6m-in-zama-privacy-protocol","status":"publish","type":"post","link":"https:\/\/news-you-need.com\/index.php\/2026\/05\/31\/centralized-controls-squeeze-defi-composability-circle-freezes-12-6m-in-zama-privacy-protocol\/","title":{"rendered":"Centralized Controls Squeeze DeFi Composability: Circle Freezes $12.6M in Zama Privacy Protocol"},"content":{"rendered":"<p><a href=\"https:\/\/www.fxleaders.com\/news\/2026\/05\/31\/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<\/a><\/p>\n<p><a href=\"https:\/\/www.fxleaders.com\/news\/2026\/05\/31\/centralized-controls-squeeze-defi-composability-circle-freezes-12-6m-in-zama-privacy-protocol\/\">https:\/\/www.fxleaders.com\/news\/2026\/05\/31\/centralized-controls-squeeze-defi-composability-circle-freezes-12-6m-in-zama-privacy-protocol\/<\/a><\/p>\n<p>Publish Date: <a href=\"publish_date]\">2026-05-31 12:59:00<\/a><\/p>\n<p>Source Domain: <a href=\"www.fxleaders.com\">www.fxleaders.com<\/a><\/p>\n<h2 class=\"col-12 font-18 fw-normal\">Circle blacklists Zama\u2019s cUSDC smart contract following a federal court order in the Overnight Finance lawsuit. Read our macro review&#8230;<\/h2>\n<p>        <span class=\"text-blue-2\">Written by: <\/p>\n<p>                <strong>Arslan Butt<\/strong><\/p>\n<p>        <\/span><br \/>\n        <span class=\"ms-2\">\u2022<\/span><br \/>\n        <span class=\"post-date ms-2\">Sunday, May 31, 2026<\/span><br \/>\n        <span class=\"ms-2\">\u2022<\/span><br \/>\n        <span class=\"post-read ms-2\">3 min read<\/span><\/p>\n<p>\n                <span class=\"ms-2\">\u2022<\/span><br \/>\n        <span class=\"post-date\">Last updated: Sunday, May 31, 2026<\/span>\n    <\/p>\n<p>                     Add an article to your <span class=\"text-green font-bold\">Reading List<\/span><\/p>\n<p>Register now to be able to add articles to your reading list.<\/p>\n<p>&#8221; aria-hidden=&#8221;true&#8221;<\/p>\n<h4 class=\"fw-bold\">Quick overview<\/h4>\n<ul class=\"mb-0\">\n<li class=\"pb-1\">Circle froze $12.6 million worth of Zama&#8217;s confidential USDC following a federal court ruling to blacklist the cUSDC smart contract.<\/li>\n<li class=\"pb-1\">The lawsuit against Overnight Finance claims that its creator diverted over $15 million from the project&#8217;s treasury before a community vote.<\/li>\n<li class=\"pb-1\">Zama&#8217;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.<\/li>\n<li class=\"pb-1\">The case raises questions about the role of privacy tools in stablecoin infrastructure and the implications of Circle&#8217;s blacklisting powers.<\/li>\n<\/ul>\n<p>Circle froze $12.6 million worth of Zama\u2019s confidential USDC following a federal court\u2019s Friday night, May 29, 2026, ruling to blacklist Zama\u2019s confidential USDC (cUSDC) smart contract. The freeze occurred Saturday morning, UTC. It is noteworthy that this protocol is not directly involved in this case.<\/p>\n<p>A group of Overnight Finance (OVN) governance token holding funds filed suit in the U.S. District Court for the&#8230;<\/p>\n<p><a href=\"https:\/\/www.fxleaders.com\/news\/2026\/05\/31\/centralized-controls-squeeze-defi-composability-circle-freezes-12-6m-in-zama-privacy-protocol\/\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Centralized Controls Squeeze DeFi Composability: Circle Freezes $12.6M in Zama Privacy Protocol https:\/\/www.fxleaders.com\/news\/2026\/05\/31\/centralized-controls-squeeze-defi-composability-circle-freezes-12-6m-in-zama-privacy-protocol\/ Publish Date:&#8230;<\/p>\n","protected":false},"author":1,"featured_media":260400,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/dr46azxe5rdcu.cloudfront.net\/wp-content\/uploads\/2026\/05\/31165559\/NNBrq-scaled.jpg","fifu_image_alt":"","footnotes":""},"categories":[16],"tags":[],"class_list":["post-260399","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-privacy"],"_links":{"self":[{"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts\/260399"}],"collection":[{"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/comments?post=260399"}],"version-history":[{"count":1,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts\/260399\/revisions"}],"predecessor-version":[{"id":260401,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts\/260399\/revisions\/260401"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/media\/260400"}],"wp:attachment":[{"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/media?parent=260399"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/categories?post=260399"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/tags?post=260399"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}