Circle Internet Financial has frozen USDC balances in the hot wallets of 16 businesses across various industries, according to on-chain detective ZachXBT. The freeze, which occurred on March 23, is linked to an ongoing U.S. civil case, though specific details remain undisclosed. The affected companies, which rely on hot wallets for handling high transaction volumes, have experienced operational disruptions due to this action. ZachXBT's analysis found no direct ties between these wallets and foreign exchange businesses, suggesting the freeze is unrelated to such activities. The decision to freeze these assets involves Circle, legal teams, forensic institutions, and courts, impacting the companies' ability to conduct regular transactions.