Circle · Ethereum · California · Bitcoin.com News
Zama Users Lose Access to $12.6 million USDC After Circle Executes Court-Ordered Blacklist
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Circle blacklisted a publicly labeled Ethereum smart contract tied to Zama’s privacy protocol on Saturday, freezing approximately $12.6 million in USDC following a U.S. federal court order connected to a civil lawsuit against Overnight Finance founder Maxim Ermilov.
Key facts
- Overnight Finance is a DeFi yield platform that issued the USD+ stablecoin and OVN governance token, raising roughly $850,000 in seed funding in 2022
- The case, Newton AC/DC Fund LP et al. v. Maxim Ermilov et al., alleges Ermilov misappropriated more than $15 million from Overnight Finance’s treasury
- He found that wallet 0xf7Fcc767dE537953b3519D4b3097A24A6dFE1c84, tied to Overnight Finance treasury operations, deposited roughly 12.4 million USDC into Zama’s cUSDC contract on May 11, 2026
- The freeze reportedly stems from a class-action lawsuit filed May 28, 2026, in the U.S. District Court for the Northern District of California
Summary
Circle blacklisted Zama’s cUSDC Ethereum contract on May 30, 2026, freezing $12.6M in pooled USDC funds. A U.S. federal court TRO tied to Newton AC/DC Fund LP’s lawsuit against Maxim Ermilov triggered the freeze. Zama plans to isolate the flagged deposit before a June 1 hearing to restore access for unaffected users. The frozen address, 0xe978F22157048E5DB8E5d07971376e86671672B2, is labeled “Zama: cUSDC Token” on Etherscan and in Zama’s own documentation.