stable coins

Story: Circle’s USDC Freeze Policy Sparks Criminal Complaint From Wisconsin Prosecutors

By Steven Anderson

1 / 15

Circle Pushes Back, Cites Jurisdiction. Circle has asked the court to dismiss the case entirely, arguing Wisconsin doesn't have…

2 / 15

Tether vs. Circle: A Growing Gap. The complaint has also dragged a familiar comparison back into the spotlight.

3 / 15

The Compensation Framework Question. There's one more wrinkle. Documents show Circle has previously discussed a victim compensation…

4 / 15

Circle, the company behind the USDC stablecoin, is facing a criminal complaint filed by Wisconsin prosecutors.

5 / 15

The case started in Walworth County. A victim — identified in court documents only as "Victim #1" — got pulled into a romance scam and was deceived into buying and transferring…

6 / 15

The jurisdiction argument is pretty standard corporate legal defense. Whether it holds is another matter.

7 / 15

Milwaukee County detective Scott Simons has laid out what that actually looks like on the ground.

8 / 15

The complaint has also dragged a familiar comparison back into the spotlight. Tether, Circle's biggest rival in the stablecoin market, reportedly froze $3.

9 / 15

See also: USDT Leads Daily Payments While USDC Dominates DeFi

10 / 15

That's a pretty significant difference, and it's not going unnoticed.

11 / 15

Critics — including investigators on these cases — say Circle could modify its smart contracts to support that kind of function.

12 / 15

And it's not just Wisconsin making noise. Prosecutors in New York have separately criticized Circle for requiring court orders before freezing USDC in the first place, and then…

13 / 15

More context: SECs 2026 Crypto Rules Target Safe Harbor, Broker-Dealers, and Exchange Act Fixes

14 / 15

The stablecoin industry has grown fast, and the legal infrastructure around it hasn't kept up.

15 / 15

Circle's broader compliance posture has been a selling point with institutional clients. It's positioned itself as the regulated, transparent alternative in the stablecoin space.

The Currency Analytics

Want the full story?