Circle Faces Accusations of Freezing Wallets Amid Legal Dispute

Circle, the issuer of USDC, has been accused of freezing 16 wallets linked to operating businesses during a civil legal case in the United States. According to NS3.AI, these wallets reportedly belonged to crypto exchanges, online casinos, and foreign currency exchange services, rather than the intended targets of the case. This situation has reignited criticism regarding centralized stablecoins, highlighting concerns that they can be frozen by issuers, potentially resembling CBDC-style control under stricter regulations.