On March 24, blockchain detective ZachXBT posted that "Circle Internet Financial froze the USDC hot wallet balances of 16 companies last night, involving multiple different businesses. I communicated directly with one of the affected companies, who stated that the freeze was due to an ongoing US civil case, but specific details have not yet been disclosed. I analyzed the on-chain activity, and these trading platforms and forex businesses do not appear to be related to each other."
Crypto businesses often use hot wallets to process the majority of user transactions. An analyst using fundamental analytics tools can identify these wallets as operational wallets handling large volumes of transactions within minutes. However, the operations of these businesses have now been negatively impacted by Circle, legal teams, forensic agencies, and court decisions.
