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Market News

Zcash Holder Says $589K USDT Stuck on NEAR Intents 50 Days After Zodl Swap

NEAR Intents initially cleared the compliance review on July 23 and approved the release of the $589,000 USDT, but the user says the refund was never executed.

Written By Dishita Malvania
Published 44 minutes ago·Updated 6 minutes ago
Make The Crypto Times preferred on GoogleGoogle
Person holding a smartphone displaying a cryptocurrency wallet interface with a balance in USDT.

A user posting on the Zcash Community Forum has said that approximately $589,000 in Tether USD (USDT) has remained inaccessible on the NEAR Intents cross-chain swap rail nearly two months after a shielded Zcash (ZEC) transaction executed through the Zodl mobile wallet. 

The complaint is drawing attention across privacy-focused communities and is being circulated widely on X, where several accounts have amplified the case since late August.

BEWARE: $589K Frozen After a ZEC-to-USDT Swap

A Zcash user reports $589,000 USDT held for 50 days, despite an earlier written compliance clearance. https://t.co/ac1qihvv9G

The initial shielded ZEC → USDT swap succeeded; the funds became stuck when deposited for a subsequent… pic.twitter.com/aJIQ0GYlkE

— Unstoppable | Privacy Wallet (@unstoppablebyhs) September 11, 2026

Neither NEAR Intents nor Zodl has issued a public statement confirming or disputing the specifics of the transaction as of publication. The Crypto Times has not independently verified the support emails, the written clearance letter, or the current status of the refund. The case should be treated as a single-user report until the parties concerned confirm or refute it on the record.

AI Summary
Show
User swapped 1,120 shielded ZEC for $589k USDT via Zodl‑NEAR Intents on July 20, 2026.
After moving USDT to Ledger, NEAR Intents recorded on‑chain deposit but failed to credit the account, triggering a compliance hold.
NEAR Intents’ AML screening can block swaps; refunds require manual review, often delayed beyond the stated two‑week window.

What the user says happened

The forum post, published on September 8, 2026, by a user identified as “timtech,” states that on July 20, 2026, the user sent 1,120 shielded ZEC from a Zodl wallet to NEAR Intents and swapped the coins into around $589,000 USDT. That first swap, according to the post, completed as expected.

The user then withdrew the USDT to a fresh address held on MetaMask, a browser-based Ethereum wallet, and moved the funds to a new Ledger hardware wallet address. 

About eight hours later, the user says the same USDT balance was sent from the Ledger address to a new Ethereum (ETH) deposit address generated by NEAR Intents for another swap. The user says the Ethereum transaction confirmed on-chain, but the deposit was never credited on NEAR Intents.

The user says the USDT came only from the shielded ZEC swaps conducted on NEAR Intents and did not pass through any exchange, mixer, decentralised finance (DeFi) protocol, or bridge outside that flow. That origin claim is the user’s own statement. Independent tracing of every prior ZEC movement inside a Zcash shielded pool is not possible from public chain data alone, given the privacy design of the protocol.

The July 23 clearance and the later reversal

According to the forum account, NEAR Intents initially treated the failed deposit as a technical issue before applying what its support team described as a “temporary withdrawal restriction” pending an administrative review. 

The user says they voluntarily supplied addresses, transaction hashes, screenshots, proof that the ZEC originated from their Zodl wallet, and an offer to sign a verification message to prove ownership of the addresses.

On July 23, 2026, NEAR Intents wrote to the user that the compliance review “has been successfully concluded,” that “all associated funds will be released and accessible for use,” and that “all administrative restrictions” had been “fully removed,” according to messages quoted in the post. The user says a refund request to the Ledger address was raised the same day and acknowledged in writing by NEAR Intents support.

The refund was not executed, the user says. Follow-ups on July 24, July 27, July 31, August 11, and August 17 produced no result. A public reply on the NEAR Intents Telegram channel on July 29 said that manual refunds normally take around two weeks, a window that the user’s timeline shows expired on August 6.

On August 26, the account says NEAR Intents wrote that the pending transaction had been “paused subject to ongoing standard regulatory compliance reviews,” with no definitive release date. 

On August 27, according to the same post, NEAR Intents described the July 23 notice as an “initial determination” and said later verification returned the matter to pending review. NEAR Intents, on the user’s telling, did not identify a new transaction or event that triggered the change and did not provide a date for a final decision.

What Zodl and NEAR Intents are, and who would control a hold

Zodl is a mobile wallet for Zcash built by the Zcash Open Development Lab. It supports storage and transfers in Zcash’s shielded pool and integrates NEAR Intents for in-app conversions between ZEC and other assets. 

NEAR Intents is an intent-based cross-chain swap infrastructure built on NEAR Protocol, a layer-one blockchain focused on chain abstraction. NEAR Intents allows a user to state a desired outcome, such as swapping USDC for ZEC, which is then routed by solvers and market makers on the back end.

A NEAR Intents case study on the Zodl integration says the connection allowed users to move between ZEC and more than 100 assets across over 30 chains from inside the wallet, describing the goal as removing the need for a centralised exchange in the flow. 

NEAR Intents’ current risk and compliance documentation states that the service runs real-time screening on quote flows using an internal anti-money-laundering (AML) portal, data from Binance AML, external providers AMLBot and PureFi, and TRM Labs for enhanced checks, and that matches can block quotes. The NEAR.com terms of service further say that refunds and recoveries can be subject to compliance review, freezing, or blocking.

Those documents establish that holds of this kind are within the stated operating model of NEAR Intents. They do not, on their own, confirm or refute the user’s specific account of what happened.

Documentation language changed during the dispute

The forum account also documents what the user says was a shift in how Zodl described its NEAR Intents integration on the wallet’s support site.

According to the post, Zodl’s swap support page previously described NEAR Intents swaps as “trustless” and not dependent on a “centralised third-party.” The user says an archived copy of that page was saved to the Wayback Machine on August 7. On August 17, while the dispute was still open, the description was updated to refer to independent market makers, on-chain settlement enforced by smart contract, and NEAR’s terms of service.

The current version of the Zodl support page on swapping into ZEC uses the newer language and adds an explicit note that “Swaps are subject to NEAR’s Terms of Service.”

Zodl’s official forum account replied to the thread on September 9. The wallet team said it “does not hold or control the assets involved in the transaction and cannot itself release or return them,” that it had “raised the matter with the team supporting our integration with NEAR Intents,” and that it could not comment publicly on the specific circumstances because the review remains ongoing. 

Zodl added that it had “updated its support documentation and public-facing language to describe the NEAR Intents integration more precisely.”

Not a Zcash protocol issue

The user’s complaint is directed at the swap rail and its compliance flow, not at the Zcash shielded pool. The post states that the shielded pool operated as designed and that the user continues to hold a larger shielded ZEC balance in the same Zodl wallet.

The dispute should not be conflated with the Orchard shielded pool soundness bug disclosed in late May 2026. That was a protocol-level issue, later mitigated in an emergency 50-hour patch response and sealed by the Ironwood (NU6.3) network upgrade activated on July 28, 2026, which introduced a new shielded pool with a turnstile mechanism designed to make any counterfeit ZEC visible on migration. 

Investor Arthur Hayes’s decision to exit his ZEC position after the Orchard disclosure was covered separately by The Crypto Times at the time. Those events relate to Zcash protocol soundness. They are distinct from a downstream compliance hold on a cross-chain swap.

Context: earlier NEAR Intents pauses

NEAR Intents has previously paused activity for compliance reasons, in a case unrelated to the Zcash swap now under dispute. On April 16, 2026, the official NEAR Intents account on X said that activity on NEAR Intents and near.com had been temporarily paused following an incident affecting Rhea Finance, “in accordance with Intents’ compliance and transaction monitoring procedures.”

The account said NEAR Intents itself was not affected and that no near.com user funds were stolen. The NEAR Intents status page for that event said swaps were paused “to prevent laundering the funds” while operators waited for a blacklist of addresses.

The underlying Rhea Finance incident, an approximately $7.6 million oracle-manipulation exploit on the NEAR-based decentralised finance protocol, was reported by The Crypto Times at the time. That case is publicly documented and operator-confirmed. It is separate from the July-to-September dispute described in the forum post.

What remains unconfirmed

The following points have not been independently established on the public record:

  • Whether NEAR Intents still holds the $589,000 USDT described by the user.
  • Whether the July 23 messages quoted in the forum post are complete and authentic.
  • Why a review described in writing as “successfully concluded” was later returned to pending review.
  • Whether the hold reflects a routine AML flag, a sanctions match, an internal operations delay, or another cause.
  • Whether Zodl has any contractual ability to compel release of funds once they have entered the NEAR Intents rail.

The Crypto Times has not been provided with, and cannot yet report, any refund transaction hash, court filing, or on-record company statement that would confirm whether the funds have been frozen, seized, or released. Any such development, if received, will be reported separately.

Also Read: SlowMist Exposes Liquid Network Flaw: How a Cache Collision Minted 3,998 Unbacked L-BTC

Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.

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