Ethereum-based privacy protocol ZAMA has recently issued an official statement regarding Circle's freeze of the cUSDC contract.

Regarding this incident, ZAMA explained, "Circle's compliance system identified a specific wallet of an external depositor as a subject of concern, and because that wallet held funds within the cUSDC contract, the entire contract was automatically frozen."

The protocol further emphasized that it was not the target of sanctions, stating, "This measure is not a sanction against ZAMA itself, but rather an incident where regulatory action against a specific address had an incidental impact."

ZAMA currently stated, "Our legal team has intervened and is working to isolate the problematic wallet," adding, "Fund access for unaffected users will be restored soon."