ZachXBT: Circle Freezes USDC Balances in 16 Operational Hot Wallets Related to Undisclosed US Civil Litigation Case

CycleProphet · 2026-03-25T01:59:16+00:00

According to "on-chain detective" ZachXBT's disclosure, Circle froze USDC balances in 16 hot wallets across multiple enterprises due to a U.S. civil litigation case. ZachXBT questions Circle's insufficient review procedures, arguing that the freeze has impacted the enterprises' daily operations.

CycleProphet

2026-03-25 01:59:16

Abstract generation in progress

Deep Tide TechFlow News, on March 25th, according to “On-Chain Detective” ZachXBT, Circle recently froze the USDC balances in 16 hot wallets belonging to multiple companies. It is reported that the freeze was initiated due to an ongoing U.S. civil lawsuit with undisclosed details, and the relevant information was confirmed directly by one of the affected companies to ZachXBT.

ZachXBT believes that these wallets involved in exchanges, casinos, forex, and other businesses do not have obvious connections with each other, questioning whether Circle conducted sufficient review of the freeze requests; he also stated that these wallets are operational hot wallets used by the businesses to handle large volumes of user transactions, and the freeze has impacted their daily operations.

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