US EditionStablecoin law allows crypto firms to profit from fraud, prosecutors say
New York prosecutors say the GENIUS Act allows stablecoin issuers to keep stolen funds and hinder law enforcement, with Circle and Tether profiting from $1 billion in reserve investments.
- Yesterday, New York Attorney General Letitia James and four New York district attorneys sent a CNN-reviewed letter criticizing the GENIUS Act for failing to protect fraud victims and shielding issuers.
- The GENIUS Act, signed last July, establishes bank-like reserve requirements for stablecoin issuers as major crypto companies and industry proponents championed it as a clear regulatory framework.
- Prosecutors allege Tether and Circle have throttled law enforcement efforts and earned $1 billion each in 2024, with Circle holding more than $114 million in frozen funds as of November.
- They argue the law omits any mandate to return stolen funds, and prosecutors warn that omission could embolden stablecoin issuers to keep assets, leaving victims of crypto fraud without recourse.
- Amid rising volumes and crime statistics, prosecutors note last year stablecoin transaction volumes surged 72% to $33 trillion and stablecoins now account for 63% of illicit crypto transactions, Chainalysis reports.
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Circle Says It Prioritizes 'Financial Integrity' As Prosecutors Reportedly Allege Stablecoin Law Allows Crypto Companies To Gain From Fraud - Circle Internet Group (NYSE:CRCL)
New York’s leading prosecutors raised concerns about the new stablecoin legislation, citing weaker safeguards for fraud victims, according to a Monday report.
Circle Says It Prioritizes 'Financial Integrity' As Prosecutors Reportedly Allege Stablecoin Law Allows Crypto Companies To Gain From Fraud
New York’s leading prosecutors raised concerns about the new stablecoin legislation, citing weaker safeguards for fraud victims, according to a Monday report. Legal Backlash Against Stablecoin Bill? New York Attorney General Letitia James and four district attorneys signed a letter criticizing the…
Top New York prosecutors target stablecoin firms 'profiting from fraud'
New York prosecutors, Letitia James and Alvin Bragg, have written a letter to Congress detailing how the GENIUS Act helps stablecoin companies profit off stolen funds. Tether and Circle reportedly earn billions in interest on stolen funds instead of turning over the assets to the authorities or returning them to the victims. How does the GENIUS Act fail to protect cryptocurrency investors? In a letter to Congressional leaders, CNN reports tha…
Bitcoin.com
Cryptocurrency News | Cryptocurrency Prices | Market CapNew York AG Letitia James Warns Stablecoin Law Fails to Protect Fraud Victims
New York Attorney General Letitia James and four district attorneys warned that the GENIUS Act gives stablecoin issuers legal cover to profit from fraud while failing to require the return of stolen funds to victims. According to the letter, first reported on by CNN’s Allison Morrow, addressed to Senate Democratic leaders, James and prosecutors including […]
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