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Circle accused of delaying return of stolen USDC to scam victims by NY and Wisconsin prosecutors

Market News
10 Jul 2026
Bitcoin
View Source
Bearish
pluang ai news

Stablecoin issuer Circle faces legal scrutiny from prosecutors in New York and Wisconsin for allegedly delaying or refusing to comply with court orders to return stolen USDC tokens to scam victims. Wisconsin prosecutors charged Circle for not facilitating the seizure and reissuance of 381,000 USDC stolen in a romance scam, while New York officials criticized Circle for only freezing assets when legally compelled. Critics also highlight that Circle holds 119 million frozen USDC tokens, which generate interest, raising concerns about financial incentives. Circle denies wrongdoing, stating it acts only under lawful orders and has reached a federal agreement to freeze flagged tokens permanently and issue new ones to victims, a process similar to burning and reissuing tokens.

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