Circle Accused of Refusing to Cooperate with Multiple US State Police to Recover Scam Victims' USDC

CoinFeed July 9 news, according to ICIJ reports, law enforcement agencies in Wisconsin and New York states in the US stated that stablecoin issuer Circle has repeatedly refused to assist in recovering scam victims' USDC assets under court orders. Wisconsin prosecutors have filed criminal charges against Circle, alleging it failed to comply with a court writ that required 'voiding and reissuing' approximately 381,000 frozen USDC to a police wallet. New York prosecutors previously wrote to senators, saying that Circle refused to freeze suspicious funds without a court order, and accused it of continuing to earn interest by freezing assets long-term without returning the underlying assets. Circle argued it is 'technically unable' to destroy and reissue tokens, but admitted it has reached a consensus with federal prosecutors on a new mechanism for permanent freezing and compensation to victims.