Circle Faces Allegations of Refusing to Freeze Suspected Scam Proceeds Tied to USDC

Law enforcement officials and state prosecutors have accused Circle of refusing to freeze or recover suspected scam proceeds linked to USDC, according to the International Consortium of Investigative Journalists (ICIJ). According to NS3.AI, state prosecutors in southeastern Wisconsin recently filed a criminal complaint alleging Circle did not comply with a warrant aimed at recovering one victim’s stolen assets. Circle argued that the complaint should be dismissed and reportedly described it as meritless. Separately, New York prosecutors said in a letter to Congress that Circle failed to honor court orders seeking reimbursement for victims.