{"id":95595,"date":"2026-03-26T10:02:53","date_gmt":"2026-03-26T07:02:53","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=95595"},"modified":"2026-03-27T11:06:08","modified_gmt":"2026-03-27T08:06:08","slug":"zachxbt-accuses-circle-of-wrongfully-freezing-16-wallets","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/zachxbt-accuses-circle-of-wrongfully-freezing-16-wallets\/","title":{"rendered":"ZachXBT Accuses Circle of Wrongfully Freezing 16 Wallets"},"content":{"rendered":"<p>Circle has frozen 16 wallets as part of a civil lawsuit in the United States. However, on-chain researcher ZachXBT discovered that these addresses belong to entities unrelated to the case.<\/p>\n<p><script async src=\"https:\/\/telegram.org\/js\/telegram-widget.js?23\" data-telegram-post=\"investigations\/304\" data-width=\"100%\"><\/script><\/p>\n<p>He examined the activity of the affected companies and found that they are not connected to each other. <\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;An analyst with basic tools could determine in a few minutes that these are operational business wallets, judging by the thousands of transactions they process,&#8221; the expert wrote.<\/em><\/p>\n<\/blockquote>\n<p>According to the researcher, the proceedings are &#8220;sealed.&#8221; Circle had no objective grounds for freezing <a href=\"https:\/\/forklog.com\/en\/news\/what-are-stablecoins\">stablecoins<\/a>. <\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\">\n<p lang=\"en\" dir=\"ltr\">The NY civil case is sealed and they have provided absolutely ZERO basis to freeze all of these business addresses.<\/p>\n<p>Aaron Nathan from Willkie Farr is the unknown plaintiffs lawyer. <\/p>\n<p>The expert witness is liable.<br \/>The judge is liable.<br \/>Circle is liable.<\/p>\n<p>In my 5+ yrs of\u2026<\/p>\n<p>\u2014 ZachXBT (@zachxbt) <a href=\"https:\/\/twitter.com\/zachxbt\/status\/2036774094872727778?ref_src=twsrc%5Etfw\">March 25, 2026<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;In over five years of investigations, this is perhaps the most incompetent freeze I&#8217;ve seen. This is what happens when the decision to freeze is left to some random federal judge instead of establishing a proper procedure,&#8221; noted ZachXBT.<\/em><\/p>\n<\/blockquote>\n<p>The crypto community supported the criticism of the <a href=\"https:\/\/forklog.com\/en\/news\/what-is-the-usdc-stablecoin\">USDC<\/a> issuer. MetaMask wallet developer Taylor Monahan called the freeze &#8220;neither the first nor the last.&#8221;<\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\">\n<p lang=\"en\" dir=\"ltr\">It\u2019s always been this way for Circle.<\/p>\n<p>If you can convince a US federal court to sign off on a freeze then the funds will be frozen. <\/p>\n<p>This most often comes up when Circle REFUSES to freeze uncommingled stolen funds that come direct from the victim.<\/p>\n<p>Their non-decision making\u2026<\/p>\n<p>\u2014 Tay \ud83d\udc96 (@tayvano_) <a href=\"https:\/\/twitter.com\/tayvano_\/status\/2036525669577007159?ref_src=twsrc%5Etfw\">March 24, 2026<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;No responsibility. No accountability. No ways to protect your rights,&#8221; she emphasized. <\/em><\/p>\n<\/blockquote>\n<p>At the time of writing, Circle has not commented on the incident. According to <a href=\"https:\/\/x.com\/zachxbt\/status\/2036963733164241027\">ZachXBT&#8217;s observations<\/a>, the company unfroze one wallet without explanation. The researcher emphasized that market participants are awaiting official clarifications.<\/p>\n<p>Back in March 24, shares of the USDC issuer <a href=\"https:\/\/forklog.com\/en\/news\/bitwise-offers-optimistic-forecast-for-circle-after-20-stock-drop\">plummeted<\/a> by 20%. The cause was concerns related to the latest version of the Clarity Act bill. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Circle froze 16 wallets as part of a lawsuit in the US. ZachXBT found these addresses belong to entities unrelated to the case.<\/p>\n","protected":false},"author":1,"featured_media":95596,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"Circle froze 16 wallets in a US lawsuit; ZachXBT found them unrelated to the case.","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1220,1138,807],"class_list":["post-95595","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-circle","tag-opinions","tag-stablecoins"],"aioseo_notices":[],"amp_enabled":true,"views":"70","promo_type":"1","layout_type":"1","short_excerpt":"Circle froze 16 wallets in a US lawsuit; ZachXBT found them unrelated to the case.","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/95595","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=95595"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/95595\/revisions"}],"predecessor-version":[{"id":95597,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/95595\/revisions\/95597"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/95596"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=95595"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=95595"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=95595"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}