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Circle Unfreezes Single Civil Litigation-Linked Wallet After Unprofessional Freeze Accusations

On March 26, on-chain detective ZachXBT pointed out that Circle has unfrozen USDC balances in a previously frozen wallet. The wallet "0x61f...e543", associated with Goated "."com, has regained access to its USDC balance, which currently holds 130,966 USDC. ZachXBT also indicated that other affected wallets may be restored in the "near future." Circle recently froze the USDC balances of 16 hot wallets belonging to multiple companies. This freeze stemmed from a US civil litigation case whose details have not yet been disclosed. ZachXBT stated yesterday that these wallets, involved in businesses such as trading platforms and foreign exchange, had no apparent connection to each other, questioning Circle's insufficient review of the freeze request. The relevant wallets are operational hot wallets used by businesses to handle a large volume of user transactions, and the freeze has impacted their daily operations. ZachXBT further noted, "The New York civil case is sealed and provides absolutely no basis to freeze all commercial addresses, this is possibly the most unprofessional freeze I've ever seen, this is the result of outsourcing freeze decisions to any federal judge instead of building your own process."

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