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Wisconsin charges Circle over refusal to reissue USDC

3 min read

Walworth County prosecutors filed a misdemeanor obstruction charge against Circle after the USDC issuer allegedly refused a December judge's order to invalidate about 381,000 stolen USDC and reissue equivalent tokens to the sheriff's office. The action follows a romance scam that funneled a victim's savings into USDC and earlier court freezes. The dispute highlights a contrast with Tether, which can burn and reissue tokens and has reportedly returned $1.1 billion, and it could shape legal and technical expectations for how stablecoin issuers must act to recover stolen funds.

Prosecutors charged Circle for refusing to reissue frozen USDC.

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