Lead · Risk Identification
$12.6M frozen — 99% belonged to one disputed account, the rest under 1% belonged to users with nothing to do with it. A pooled contract can't freeze "whose money" — only "the whole address."
Fiona Lau
·
August 29, 2026
At 01:08 UTC on May 30, 2026, USDC issuer Circle executed a blacklist against the cUSDC contract run by privacy protocol Zama, freezing a total of $12,606,386 in USDC held inside it. What quickly became clear afterward: the vast majority of that frozen money didn't belong to the account that triggered the dispute — because cUSDC is a pooled contract, and once one account gets flagged, everyone...