05/30/2026
Court-Ordered Circle Freeze Traps $12.6 Million in Zama cUSDC Contract Amid Overnight Finance Suit
What happened: A court-ordered freeze by Circle has immobilized $12.
What happened: A court-ordered freeze by Circle has immobilized $12.6 million in a Zama confidential USDC (cUSDC) contract, as part of ongoing litigation involving Overnight Finance. Zama’s CEO stated the protocol was “caught in a crossfire” and is investigating the incident.
Why it matters: The freeze highlights the legal and operational risks facing DeFi protocols, especially those handling large sums in stablecoins. It also underscores the growing intersection of traditional legal processes and decentralized finance infrastructure.
Source: The Block