Circle Refuses to Assist in Recovering Stolen USDC, Drawing Criticism from Wisconsin and New York Prosecutors

Odaily reported that prosecutors from Wisconsin and New York have expressed dissatisfaction with stablecoin issuer Circle, as the company has repeatedly refused to cooperate with law enforcement agencies in recovering stolen funds.

According to the report, multiple law enforcement agencies had requested Circle to help victims of fraud and hacking incidents recover their losses by burning and reissuing USDC. However, Circle declined these requests based on its own policy stance.

Circle stated that modifying the blockchain ledger to reverse transactions would undermine the fundamental properties of the USDC stablecoin and could set a dangerous precedent for the entire crypto industry. This incident highlights the conflict between the immutability of blockchain and the need for law enforcement to recover assets. (Protos)