Circle has unfrozen the USDC balance in one of the 16 wallets it previously froze, following criticism from on-chain investigator ZachXBT. The wallet, linked to Goated.com, now holds approximately 130,966 USDC. ZachXBT highlighted that other wallets might also be restored soon, as the freeze was linked to a sealed US civil case without public justification. The decision to freeze these wallets, reportedly associated with unrelated businesses, has drawn scrutiny for its lack of transparency. ZachXBT criticized the move as potentially the most incompetent freeze he has encountered, emphasizing the need for a more robust process than relying on court orders without technical verification. Market commentators and security researchers have echoed concerns about the impact of such actions on legitimate business activities.