Zama accelerates compliance after court lifts $12.5M USDC freeze
Privacy protocol Zama says it will accelerate compliance measures after a court lifted a $12.5 million USDC freeze tied to an unrelated legal dispute.
Privacy-focused blockchain protocol Zama said it will accelerate compliance measures and proceed with its confidential USDC launch after a US court lifted a temporary freeze on about $12.5 million in USDC held in its cUSDC smart contract, according to a Tuesday X post by co-founder Rand Hindi.
The freeze, first reported by Cointelegraph on Saturday, stemmed from a temporary restraining order obtained in connection with an ongoing dispute involving stakeholders of an unrelated project, Overnight Finance. Circle froze the funds after receiving the court order, even though Zama was not a party to the case, according to Hindi’s account.
“The same court has now lifted the freeze, determining that it was unwarranted,” Hindi wrote. He added that the protocol’s cUSDC contract and all underlying USDC had returned to normal operation.
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