Why was a complaint filed against Circle?

The complaint claims Circle did not freeze allegedly stolen USDC after being notified of a scam.

Is Circle accused of running the scam?

No. The complaint does not accuse Circle of participating in the alleged fraud.

USD Coin is a US dollar-backed stablecoin issued by Circle and used across crypto markets.

Circle can freeze specific USDC addresses under certain circumstances because it controls the token's smart contract.

Circle had not publicly commented on the complaint at the time of reporting.

Image for illustrative purposes only. Not a real photo.

Written by Heidi Cuthbert Published Jul 15, 2026, 12:10 AM

A US resident has filed a criminal complaint after losing USDC in an alleged scam.
The complaint claims Circle did not freeze the stolen funds despite being notified.
The case raises questions about stablecoin issuer responsibilities after fraud.

A US resident has filed a criminal complaint against Circle, claiming the company failed to stop an alleged USDC scam.

The complaint says the victim reported the theft but the stolen USD Coin (CRYPTO:USDC) was not frozen before it moved further.

The filing argues Circle could have acted sooner because USDC can be frozen by the issuer in some cases.

The complaint does not accuse Circle of taking part in the alleged scam.

Circle has not publicly responded to the complaint or the claims made against the company.

The case highlights ongoing debate over how much responsibility stablecoin issuers should have after digital asset theft.

USD Coin is the world's second-largest stablecoin and is widely used for crypto trading, payments and decentralised finance.