ZachXBT: Circle Freezes 16 Corporate Hot Wallets Holding USDC Amid Unspecified U.S. Civil Legal Proceeding

BlockBeats News, March 25th, according to on-chain sleuth ZachXBT, Circle has recently frozen the balances of 16 hot wallet USDC holdings belonging to multiple businesses. This freeze stemmed from a yet undisclosed U.S. civil lawsuit, with details confirmed directly to ZachXBT by one of the affected businesses.

ZachXBT stated that these wallets, involved in exchanges, casinos, forex, and other businesses, have no apparent connection to each other, raising questions about Circle's lack of thorough review before honoring the freeze request. The wallets in question are operational hot wallets used by the businesses to facilitate a large number of user transactions, and the freeze has impacted their daily operations.