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Zama: cUSDC smart contract freeze was collateral damage from Overnight Finance rugpull
May 30, 2026
< 1 min read
by Hannah Collymore
for CryptoPolitan
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Zama co-founder Rand Hindi clarified that Circle’s blacklist of a protocol contract address was unrelated to Zama after reports that roughly $12.6 million in user funds were locked in Zama’s confidential USDC token on Ethereum. The incident underscores how centralized controls over USDC can disrupt DeFi privacy tokens, raising security, custodial and token launch risks that could hinder adoption.
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Zama’s co-founder Rand Hindi, has clarified that the blacklist placed by Circle on the protocol’s contract address had nothing to do with Zama at all. Reports show that approximately $12.6 million in user funds were locked in Zama’s confidential USDC token on Ethereum. Why was Zama’s contract frozen? Following reports that $12.6 million in user...
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In This News
Coins
$ 1.81K
+1.49%$ 0.99976
0%$ 1.0012
+0.19%$ 0.9939
Funds
Predictions Markets
See what traders are focused on
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