Overview
- Circle blacklisted Zama’s cUSDC contract, freezing roughly $12.6 million in pooled USDC after a court order was filed in the Overnight Finance case.
- The freeze followed a class-action complaint that alleges Overnight Finance creator Maxim Ermilov moved about $15.7 million from a shared treasury and that roughly $12.5 million of USDC flowed into the cUSDC contract.
- On-chain investigator ZachXBT publicly linked the blacklisted address to Zama’s official cUSDC contract and traced the disputed deposit to Overnight Finance, which prompted rapid enforcement.
- Zama acknowledged the blacklist, said Circle gave no prior warning, paused its confidential contracts while it investigates, and said most funds in cUSDC came from the disputed deposit.
- The ex parte court order and the pooled design of cUSDC mean issuer-level freeze powers can lock innocent users’ funds, and a June 1 hearing will let both sides present arguments and shape the legal precedent.