ZachXBT Calls Circle USDC Wallet Freeze 'Most Incompetent' Ever

Circle unfroze the USDC balance in one of 16 hot wallets it had blocked earlier this week, restoring roughly 130,966 USDC in an address linked to Goated.com, per Arkham data cited in the report. On-chain investigator ZachXBT, whose independent review found the affected wallets appeared operational with no signs of illicit behavior, called the freeze potentially 'the single most incompetent' he has seen in over five years of investigations. At least one impacted entity said the action was connected to a sealed U.S. civil case, though no public justification was provided, and other wallets could also be restored soon.