Circle has reportedly frozen about $12.6 million worth of USDC tied to Zama’s confidential contract, a move observed by on-chain researcher ZachXBT. The USDC in question is associated with Zama’s privacy-focused protocol, and the contract is publicly labeled on block explorers as well as in the protocol’s technical documentation. The exact rationale behind the freeze remains unclear, even as researchers note a notable around-the-calance transaction from Overnight Finance into the Zama ecosystem earlier this month.