ChainCatcher report, according to The Block, "on-chain detective" ZachXBT revealed that Circle has unfrozen one of the 16 USDC wallets previously blacklisted. The wallet address, 0x61f…e543, is associated with Goated.com and currently holds approximately 130,966 USDC. ZachXBT stated that the remaining affected wallets are expected to be restored in the near future. This unfreezing occurred following strong public criticism. Previously, reports indicated that Circle had frozen USDC balances in 16 hot wallets linked to various businesses; ZachXBT said this action was related to an undisclosed U.S. civil case, which remains confidential. ZachXBT strongly criticized the freeze, noting that no justification for the action was provided and calling it one of the most incompetent freezes he has seen in his five years of experience. MetaMask security researcher Taylor Monahan also criticized Circle on social media for lacking accountability mechanisms. As of now, Circle has not issued any public statement regarding these specific wallets or the legal basis for the freeze.
ZachXBT Criticizes Circle's Lack of Transparency in Freezing Operations
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Summary
ZachXBT criticized Circle for its lack of transparency regarding a recent wallet freeze, calling it one of the worst operations in five years. According to ChainCatcher, one of 16 blacklisted USDC wallets has been unfrozen, with the address 0x61f…e543 now holding 130,966 USDC. This move occurs amid increasing scrutiny over compliance with CFT regulations. ZachXBT linked the freeze to a U.S. civil case under confidentiality, while MetaMask’s Taylor Monahan also expressed concerns. Circle has yet to explain the legal basis for the action or how it aligns with the upcoming MiCA rules.
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