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Thanks to @zachxbt, we found the root cause and will be taking the appropriate actions to unblock the situation. Tldr; this has nothing to do with Zama, or privacy.
The issue stems from an address related to the Overnight Finance hack, which deposited over ~$12.5m USDC into our confidential USDC wrapper contract. Back when they did, their address wasn't on any sanctions list and was not flagged by our KYT tools. However, a court order yesterday night placed a restraining order on various wallets linked to the hacker.
Since there wasn't much utility yet for the cUSDC wrapper, there were very little funds in it, and as a result the vast majority (>99%) of funds in the cUSDC contract came from that single hacker's deposit. Because of this, the court order asked to freeze our wrapper contract to freeze the hacker's fund.
So the sanction was not against Zama, or against privacy. It was a classic restraining order as we see often in DeFi, and we should have been notified so we could have taken the appropriate actions on our side.
I want to be very clear about something: our posture has always been compliant confidentiality, and we will not tolerate any illicit behavior in our protocol. It's also really useless for hackers to try to use Zama to hide their trail as we are precisely not a mixer and we do not obfuscate the sender and recipient, only balances and amounts. Eg you can see the hacker's cUSDC transactions here: eth.blockscout.com/address/0xf7Fc…
We are in touch with the various people involved to resolve the situation asap. In the meantime, we will pause the cUSDC, cUSDT and cWETH contracts until we have finished our investigation, identified all addresses linked to this case and taken appropriate action.
I will share a more detailed post-mortem and how we plan to deal with such requests in the future.
Rand@randhindi
We are investigating the cUSDC contract freeze. I will update here as the situation progresses.
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@TedPillows Institutions don't want to rely on ETH, at least not those with any foresight.
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Dear @b1ackd0g and @EmanAbio,
your company, Mysten Labs, currently owes me a total sum of $599. the refund for my @SuiPlay device.
it has now been 20+ days of emails and back and forth, yet the refund hasn’t come in yet.
payment was made onchain at purchase and it took less than 10 secs.
the NFT which is a proof of ownership has also been sent back and in your custody.
you claim to build consumer crypto, but somehow a $599 refund takes longer than the last bear market.
kindly check with your ops team. Alex, Amalia, Ionela, and Martin have sent me enough templated emails at this point that they conflict each other.
please free my $599 USDC. my kids will appreciate it.
yours faithfully,
anon sui user
DEGEN NEWS@DegenerateNews
BREAKING: SUI NETWORK DOWN FOR 4TH TIME IN THE PAST 48 HOURS ONGOING DOWNTIME SURPASSES 20 MINUTES SOURCE: suiscan.xyz/mainnet/home
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