Circle says it cannot reissue frozen USDC as it seeks dismissal of Wisconsin complaint
The post Circle says it cannot reissue frozen USDC as it seeks dismissal of Wisconsin complaint appeared on BitcoinEthereumNews.com. Circle has asked a Wisconsin court to dismiss a criminal contempt complaint. It argues it lacks the technical ability to comply with an order requiring it to invalidate frozen USDC and issue replacement tokens to compensate an alleged fraud victim. The filing centers on the technical limits of USDC once it leaves Circle’s custody. While the stablecoin issuer says it can freeze tokens held in third-party wallets by blocklisting addresses, it argues it cannot seize, destroy, or reissue those tokens because it does not control the wallets’ private keys. Circle argues it complied with freeze order but could not reissue USDC The dispute stems from an alleged cryptocurrency scam in which a Wisconsin resident lost more than 381,000 USDC. It was lost after the stablecoins were transferred from Crypto.com to a wallet controlled by an alleged fraudster. Prosecutor