Zama founder says team is working to lift cUSDC freeze; post-mortem to follow

Zama Protocol founder Rand said on May 30 that the team is working with relevant parties to unfreeze the cUSDC contract and will publish a post-incident analysis. According to Rand, the root cause has been identified and is unrelated to Zama or its privacy technology. The freeze traces back to roughly $12.5 million in USDC previously deposited by a hacker address linked to Overnight Finance. At the time of the deposit, the address was not on any sanctions list and was not flagged by KYT tools. Rand said a U.S. court issued a restraining order last night freezing the wallet associated with the hacker. With more than 99% of the contract's funds originating from that address, the court ordered the entire wrapped contract frozen to secure the allegedly stolen assets. Zama reiterated its "compliance and confidentiality" position and said it will not tolerate illegal activity. The protocol has temporarily paused the cUSDC, cUSDT, and cWETH contracts while conducting a thorough investigation. Zama said it will also release guidance on how it will handle future court requests.