Question 1

Why did Circle freeze Zama's cUSDC contract?

Accepted Answer

An address connected to the Overnight Finance hack deposited over $12.5 million USDC into the cUSDC wrapper, and a court-issued restraining order led Circle to blacklist the entire contract address rather than just the depositor's wallet, according to Zama co-founder Rand Hindi.

Question 2

Are Zama users' funds permanently lost?

Accepted Answer

Not necessarily. Zama's legal team is working to resolve the situation and unblock legitimate users, according to Hindi's statement on X. The outcome depends on whether the freeze can be narrowed to target only the flagged depositor.

Question 3

Did Zama's privacy technology cause the problem?

Accepted Answer

No. Hindi stated that "this has nothing to do with Zama, or privacy," and the protocol's official account confirmed the freeze was collateral damage from an external depositor's flagged wallet, not a sanction against the protocol itself.

Zama

Zama: cUSDC smart contract freeze was collateral damage from Overnight Finance rugpull

One sharp brief.
Every day.

Zama

Zama: cUSDC smart contract freeze was collateral damage from Overnight Finance rugpull

One sharp brief.Every day.

One sharp brief.
Every day.