ZachXBT: Zama cUSDC contract frozen funds may be linked to Overnight Finance.

CoinFeed reported on May 30th that on-chain analyst ZachXBT stated that, after investigation, stablecoin issuer Circle has blacklisted the cUSDC contract on Ethereum for its privacy protocol Zama. On May 11, 2026, an address associated with Overnight Finance deposited approximately $12.4 million worth of USDC into Zama. It is understood that Overnight Finance has previously been embroiled in allegations of embezzlement by its team and even initiated a governance vote on treasury fund allocation on Snapshot.