Zama responds to cUSDC contract freeze incident: Related address triggered compliance mechanism, not a sanction against the protocol

Odaily reports that privacy computing protocol Zama posted on platform X, stating that Circle's compliance system flagged an external deposit address. As this address held funds in the cUSDC contract, the entire cUSDC contract was subject to routine freezing measures. Zama emphasized that this incident is "collateral damage" caused by the affected address, and is not a sanction action against the Zama protocol. Currently, Zama's legal team has intervened and is working with relevant parties to isolate the flagged address, aiming to restore normal access to funds for other unaffected participants as soon as possible.