#criminal complaint

Circle faces a Wisconsin complaint over refusing a court-ordered USDC recovery action. Prosecutors say stablecoin issuers face growing pressure to support scam investigations. The case may reshape how crypto firms handle frozen assets and victim claims. Circle faces a criminal complaint in Wisconsin after prosecutors accused the stablecoin issuer of refusing to comply with a […] The post Circle Hit With Criminal Complaint After Rejecting USDC Seizure Request appeared first on Live Bitcoin News.

The post Circle Refused to Recover a Scam Victim’s USDC, Wisconsin’s Criminal Complaint Says appeared on BitcoinEthereumNews.com. Wisconsin prosecutors have filed a criminal complaint against Circle, alleging the USDC issuer intentionally disobeyed a court warrant to recover roughly 381,000 stolen tokens for a local scam victim. The misdemeanor charge sharpens a dispute over how much responsibility stablecoin issuers bear for returning stolen funds. A Romance Scam Set the Criminal Complaint Against Circle in Motion A Walworth County resident received an unsolicited text in May 2025 from a scammer calling herself Lenora. Posing as a romantic partner, she steered part of his savings into USD Coin (USDC), a dollar-pegged stablecoin, on a bogus investment platform. According to the court filing, a county court ordered Circle to freeze the tokens last August, and it complied. In December, however, a judge ordered Circle to invalidate the tokens and reissue an equal amount to the sheriff’s o

The case could redefine stablecoin issuer responsibilities, impacting regulatory frameworks and court authority over digital asset recovery. The post Circle faces criminal complaint in Wisconsin over USDC recovery refusal appeared first on Crypto Briefing.