Wisconsin prosecutors filed a criminal complaint against Circle for refusing to comply with a court order to freeze and recover scam victims' USDC; Circle disputes the allegations and claims technical inability.
DeFi & Yields ·
Wisconsin prosecutors filed a criminal complaint against Circle, alleging the company refused to comply with a court order to freeze and recover USDC held by scam victims, according to an investigation by ICIJ. Law enforcement authorities in Wisconsin and New York have accused Circle of failing to assist in recovering stolen assets linked to fraud cases.
Circle has disputed the allegations, asserting that the complaint is without merit. The company contends it lacked the technical capability to execute the court's directive and questioned whether the court possessed jurisdiction to issue such an order in the first place.
The dispute hinges on whether stablecoin issuers can or should be compelled to freeze or recover tokens on behalf of law enforcement, and what technical or legal obligations Circle bears toward frozen accounts. The outcome remains unresolved, with no indication yet of how the complaint will proceed or whether either party's factual or jurisdictional claims will prevail.