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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99%+ of cUSDC TVS coming from one Overnight-linked depositor made contract-level blacklisting turn into protocol-wide collateral damage. Zama’s answer is very institution-coded: FHE for balances and amounts, attributable EVM accounts, mirrored USDC freezes, KYT hooks, and a compliance council. That path probably gets banks and RWA desks closer to using shielded rails, but it draws a bright line away from Zcash/Tornado-style privacy: confidentiality survives, censorship resistance does not.

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