BlockBeats News, May 30th, on-chain detective ZachXBT further disclosed that, to his knowledge, Circle blacklisted the Zama cUSDC contract address, causing approximately $12.6 million to be frozen, due to its involvement in a civil lawsuit in the United States. Circle is believed to have received enforcement notification from a U.S. court. Additionally, the Zama team does not appear to have been notified of the Circle freeze in advance, and the plaintiff may have inaccurately stated the link between the frozen address and the Zama contract to the court.

The civil lawsuit was filed against Overnight Finance, with one of the plaintiffs being Patagon Management, an entity known for malicious DAO takeovers and RFV looting protocols. Zama users are expected to be indirectly affected by this legal dispute.

BlockBeats Note: Patagon Management is a U.S.-based cryptocurrency-exclusive investment and trading firm founded by Diogenes Casares, focusing primarily on "special situations investing," particularly in the realm of decentralized autonomous organizations (DAOs). The entity is known for its involvement in malicious DAO takeovers and Risk-Free Value (RFV) looting strategies, causing DAO dissolution or liquidation by acquiring a large number of governance tokens and driving proposals to return value to token holders (or themselves). Its lawsuits and governance actions related to projects such as SpartacusDAO, Aragon DAO, Rook DAO, are often seen by project teams as risk-free value extractors or "vulture investors."