Circle's Refusal to Cooperate with Law Enforcement in Recovering Stolen Funds Draws Displeasure from Wisconsin and New York Prosecutors

CoinFeed July 10 news, according to Protos, prosecutors in Wisconsin and New York have expressed dissatisfaction with stablecoin issuer Circle, because Circle repeatedly hindered law enforcement agencies' attempts to recover stolen funds. Multiple law enforcement agencies had sought Circle's cooperation in helping victims of fraud and hacking incidents recover losses by burning and reissuing USDC tokens, but Circle rejected these requests based on its policy stance. Circle believes that modifying the blockchain ledger to reverse transactions would undermine the fundamental attributes of the USDC stablecoin and set a dangerous precedent for the entire cryptocurrency industry. This stance highlights the deep contradiction between blockchain immutability and law enforcement needs.