Circle Freezes $12.6 Million in Confidential USDC

Circle has taken action against $12.6 million in confidential USDC (cUSDC) held in a Zama protocol contract on Ethereum.

The funds were frozen as part of an investigation linked to Overnight Finance, amid governance disputes that have raised concerns about issuer control over DeFi projects using fiat-backed stablecoins.

The move has underscored ongoing tensions between centralized stablecoin issuers and decentralized privacy protocols, leaving affected users without clear resolution.