"On-chain Detective" ZachXBT Criticizes Circle's Lack of Transparency in Freezing Operations, Freezes 16 Wallets Without Providing Justification

CycleProphet · 2026-03-26T03:54:19+00:00

According to reports, ZachXBT disclosed that Circle has unfrozen a USDC wallet associated with Goated.com, holding approximately 130,966 USDC. Previously, Circle had frozen 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.

CycleProphet

2026-03-26 03:54:19

Abstract generation in progress

Deep Tide TechFlow News, on March 26, according to The Block, “On-Chain Detective” ZachXBT revealed that Circle has unfreezed one of the 16 blacklisted USDC wallets. 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. Previously, 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 sharply criticized the freeze, 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 criticized Circle on social media for lacking accountability.

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

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.