Wisconsin, NY authorities criticize Circle for refusing to aid fraud recovery

Law enforcement authorities in the U.S. states of Wisconsin and New York have criticized Circle (CRCL) for refusing to recover funds for fraud victims despite court orders, the International Consortium of Investigative Journalists (ICIJ) reported. Wisconsin prosecutors have filed criminal charges against Circle for allegedly refusing to execute a warrant to recover $381,000 in assets from a fraud case. Separately, New York prosecutors sent a letter of protest to the Senate, alleging that Circle is refusing to return over $119 million in frozen assets to keep the interest earned on them. Circle has claimed it is technically impossible to freeze and reissue USDC, a stance that has drawn comparisons to Tether, which has cooperated with similar investigations by burning and reissuing $1.1 billion in USDT.