According to an investigation by the International Consortium of Investigative Journalists (ICIJ), law enforcement agencies in the U.S. states of Wisconsin and New York have accused stablecoin issuer Circle of refusing to cooperate in freezing or returning victims’ funds in some fraud cases. The report said that the Wisconsin prosecutors have filed a criminal complaint against Circle over one case, and that the New York prosecutors previously also sent a letter to U.S. senators, criticizing Circle for not actively cooperating with law enforcement in some cases. Circle, meanwhile, responded that the allegations lack a basis, that the company does not have the technical capability to carry out the court orders involved, and that the relevant courts have no jurisdiction over it. It also said that it will only freeze assets in accordance with lawful procedures to protect users’ rights.

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