Circle USDC Freeze Policy: The Law Enforcement Gap
AMLBot data shows Tether froze about $3.3 billion in USDT from 2023 to 2025, far more than Circle’s $109 million in USDC.
- Wisconsin prosecutors filed a criminal complaint against Circle yesterday after the company refused a court order to burn and reissue about 381,000 stolen USDC tokens from a Walworth County romance scam.
- Circle maintains it lacks the technical ability to burn and reissue USDC held in third-party wallets and insists it only responds to formal legal orders to protect users from wrongful freezes.
- AMLBot data shows Tether froze about $4.7 billion in illicit assets between 2023 and 2025, compared to about $109 million for Circle, which lacks a public burn and reissue mechanism.
- Milwaukee County detective Scott Simons noted that delays in freeze requests cost victims money, while New York prosecutors alleged Circle earns interest on frozen USDC reserve assets.
- Although Circle disclosed discussing victim compensation processes with federal authorities, critics argue the lack of a public mechanism leaves scam victims without a recovery path as funds disappear.
14 Articles
14 Articles
USDC Stablecoin Issuer Circle Accused of Refusing to help Scam Victims: Report
Crypto giant Circle is rebuffing efforts to help scam victims, law enforcement officials say. According to a report by the International Consortium of Investigative Journalists (ICIJ), the issuer of the USDC stablecoin is allegedly declining to cooperate in assisting scam victims recover their funds. The ICIJ report says some unnamed law enforcement officials are raising […] The post USDC Stablecoin Issuer Circle Accused of Refusing to help Scam…
Circle Fights to Dismiss Wisconsin Contempt Case Over Frozen USDC
Circle is contesting a criminal case in Wisconsin that accuses the company behind the USDC stablecoin of failing to return cryptocurrency stolen from a scam victim, a dispute that surfaced publicly this week. The case drew wider attention after the International Consortium of Investigative Journalists detailed it this week. Prosecutors in Walworth County filed a criminal complaint in April, alleging that Circle “did intentionally disobey, resist…
Circle Prosecutors in Wisconsin and New York Push Hard on USDC Frozen Fund Cases
Circle is in serious legal trouble. Prosecutors in Wisconsin and New York are going after the USDC issuer, accusing the… Read the original on Circle Prosecutors in Wisconsin and New York Push Hard on USDC Frozen Fund Cases. For more crypto news and analysis, visit TheCurrencyAnalytics.com.
Circle is in the sights of the judicial authorities of Wisconsin and New York. The company is accused of restraining the return of stolen funds to victims of cryptic scams. Cause: USDC frozen but never rendered, despite court orders. The article Circle accused of restraining the return of stolen funds to the victims of scams appeared first on Cryptoast.
New CLARITY draft; Circle faces criminal charges in pig butchering
The CLARITY Act faces new delays as U.S. crypto regulation, prediction markets, Cash App penalties, and Circle's legal battle reshape digital assets. The post New CLARITY draft; Circle faces criminal charges in pig butchering appeared first on CoinGeek.
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