Circle Refuses to Help Prosecutors Recover Stolen Funds, Drawing Frustration from Wisconsin and New York Officials

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According to Protos, prosecutors in Wisconsin and New York expressed frustration on July 10 over Circle's refusal to cooperate in recovering stolen funds. Law enforcement agencies had repeatedly requested that Circle destroy and reissue USDC tokens to help fraud and hacking victims recover losses, but the stablecoin issuer declined on policy grounds. Circle stated that reversing transactions on the blockchain would undermine USDC's fundamental properties and set a dangerous precedent for the broader cryptocurrency industry.
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