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

Odaily reported that prosecutors in Wisconsin and New York have expressed dissatisfaction with stablecoin issuer Circle, citing its repeated refusal to cooperate with law enforcement agencies in recovering stolen funds.

According to the report, multiple law enforcement agencies had requested Circle to assist victims of fraud and hacking incidents in recovering their losses by destroying and reissuing USDC. However, Circle rejected these requests based on its own policy stance.

Circle stated that modifying the blockchain ledger to reverse transactions would undermine the fundamental attributes of the USDC stablecoin and could set a dangerous precedent for the entire cryptocurrency industry. This incident highlights the conflict between the immutability of blockchain and the asset recovery needs of law enforcement agencies. (Protos)