A court has ordered the unfreezing of $12.5 million in USDC that had been frozen during a legal dispute involving privacy protocol Zama. The company said the case was not related to its own operations, but it will accelerate compliance measures in response to the decision.
The Freeze and Its Origin
The funds were locked by a court order as part of a broader legal fight that drew in Zama. Court records show the $12.5 million in USDC, a stablecoin pegged to the U.S. dollar, was frozen as a protective measure while the unrelated dispute played out. Zama itself was not a party to the original case, but the freeze touched assets somehow connected to the company.
The exact nature of the dispute and the legal basis for the freeze remain unclear from public filings. A judge later reviewed the case and decided the funds should be released, concluding the freeze was no longer justified given the circumstances.
Court’s Decision to Release the Funds
The ruling lifted the freeze entirely, restoring access to the $12.5 million. The court did not impose any ongoing restrictions or conditions on the release. The order effectively ends the direct involvement of those funds in the legal fight, though the underlying dispute continues separately.
Zama was not ordered to pay any penalty or take any action as part of the decision. The company has characterized the outcome as a validation of its position that the freeze was unwarranted.
Zama’s Compliance Pledge
In a statement after the court’s action, Zama said it will speed up its compliance efforts. The privacy protocol did not provide specific details about what the acceleration will involve, but it signaled a focus on making sure such freezes don’t happen again. The company said the case highlighted the need for clearer processes around asset freezes in the crypto space.
Zama builds tools for private computation and has been working on technologies that let blockchain users verify data without revealing it. The company has not disclosed whether it plans to change its platform or policies beyond the compliance pledge.
The decision removes a cloud that hung over Zama’s financial operations. With the USDC now unfrozen, the company can use those funds as it sees fit. The timing of the next compliance update from Zama has not been announced.
