The International Consortium of Investigative Journalists (ICIJ) reported that judicial authorities in Wisconsin and New York have criticized Circle (CRCL) for refusing to recover funds for fraud victims despite court orders. Wisconsin prosecutors have filed criminal charges against Circle for refusing to execute a warrant to recover approximately $381,000 in fraud-related assets. New York prosecutors have also sent a letter of protest to the Senate, stating that Circle is refusing to return funds to gain interest income from frozen assets totaling over $119 million. While Circle claims that it is technically impossible to freeze and reissue USDC, critics point out the contrast with Tether, which has cooperated with investigations by burning and reissuing $1.1 billion worth of USDT.
