"On-chain detective" ZachXBT criticizes Circle's freezing operations lack transparency, freezes 16 wallets without providing evidence

DeepFlowTech · 2026-03-26T02:23:21+00:00

According to reports, ZachXBT has disclosed that Circle has unfrozen a USDC wallet associated with Goated.com, which holds approximately 130,966 USDC. Previously, Circle froze 16 wallets due to their connection to an undisclosed civil case. ZachXBT criticized the freezing operation as improper, and a MetaMask security researcher also noted the lack of accountability mechanisms. Circle has not yet responded to this matter.

DeepFlowTech

2026-03-26 02:23:21

Abstract generation in progress

Deep Tide TechFlow News, on March 26, according to The Block, “On-Chain Detective” ZachXBT revealed that Circle has unblocked one of the 16 USDC wallets previously blacklisted. The wallet address is 0x61f…e543, related to Goated.com, and currently holds about 130,966 USDC. ZachXBT stated that the remaining affected wallets are expected to be gradually restored “in the near future.”

This unfreezing occurred after strong public criticism. Earlier reports indicated that Circle froze USDC balances in 16 hot wallets related to different businesses. ZachXBT said this move is connected to an undisclosed U.S. civil case, which is currently under confidentiality.

ZachXBT criticized the freeze action sharply, saying the involved parties provided no basis for the freeze, and called it one of the “least competent freeze operations” he has seen in his 5 years in the industry. MetaMask security researcher Taylor Monahan also posted on social media criticizing Circle for lacking accountability.

Currently, Circle has not issued a public statement regarding the specific wallets or the legal basis for the freezes.

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