ZachXBT Accuses Circle of Freezing 16 USDC Hot Wallets
On March 25, 2026, crypto investigator ZachXBT published allegations that Circle froze 16 hot wallets that belonged to active businesses, naming cryptocurrency exchanges and online casinos among those affected. The post asserts the wallets held USDC and implies the freezes were executed without proper cause, a claim that, if accurate, would directly impact the firms’ ability to move funds and serve customers.
The accusation has sharpened an ongoing debate over centralized stablecoin governance and operational risk. Businesses and users that rely on USDC could face liquidity interruptions or reputational fallout, and the episode underscores how custodial decisions by issuers can ripple across markets. The community is watching for clearer evidence and any statements from Circle, since confirmation or denial will shape regulatory and market responses.