Woofun AI reports that prosecutors in Wisconsin and New York have expressed dissatisfaction with Circle’s refusal to assist law enforcement in recovering stolen funds. Authorities requested the destruction and reissuance of USDC tokens to aid fraud and hacking victims, but Circle declined based on internal policy. Circle maintains that reversing transactions would undermine USDC’s fundamental attributes and set a dangerous precedent for the industry. Prosecutors argue that as a regulated issuer, Circle should accept greater social responsibility, while the company insists on upholding blockchain immutability principles.