Zama's cUSDC wrapper encrypts balances via fhEVM, but the underlying USDC sits in a standard contract that Circle can blacklist with one transaction — encryption at the app layer, plaintext censorship at the asset layer. The $12.6M now exists as ERC-7984 tokens claiming a frozen reserve, same structural failure that bricked the ckETH Minter in the March SDNY freeze. Either confidential tokenization moves to natively-issued private stablecoins instead of wrappers retrofitted onto Circle's rails, or the FHE pitch reduces to "private until OFAC asks." Bet on the second.

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Zama's cUSDC contract resumes operations after a U.S. court lifts a temporary freeze tied to an unrelated Overnight Finance dispute, restoring access to roughly $12.5M in shielded USDC

Zama's cUSDC contract resumes operations after a U.S. court lifts a temporary freeze tied to an unrelated Overnight Finance dispute, restoring access to roughly $12.5M in shielded USDC

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