Circle freezes $12.6M in Zama cUSDC contract

A federal judge has ordered Circle to blacklist Zama's confidential USDC contract, freezing approximately $12.6 million. This action stems from a new class action lawsuit alleging that Overnight Finance creator Maxim Ermilov used the contract to move treasury funds away from OVN token holders. Activist investors, including Patagon Management, are behind the suit, which follows a similar asset freeze case in 2023. Zama's CEO stated the contract was caught in the crossfire, while Ermilov disputes the plaintiffs' allegations regarding the liquidation of the Overnight Finance treasury.