Channel 3000 | Following an investigation by Wisconsin’s Walworth County Sheriff’s Office, a judge has authorized the freezing and seizure of stablecoin funds held in digital wallets.

The action resulted from two investigations of pig-butchering investment fraud schemes involving more than $1 million. Two families in Walworth County contacted the Sheriff’s Office after being targeted by sophisticated investment fraud schemes.

In December 2024, an initial complaint reported a loss of $770,000 from the victim’s retirement savings to an entity operating under the name “G110 Monarch Capital Investments.”
In August 2025, the Wisconsin Department of Financial Institutions (DFI), Division of Securities Enforcement Bureau, referred a case involving a coordinated romance and investment fraud scheme. The victim reported a loss of $460,000, comprised of both personal retirement funds and proceeds from his late wife’s life insurance policy.

The Greenfield Police Department provided specialized cryptocurrency tracing expertise, and the DFI tracked the flow of funds using forensic tools. To obscure the paper trail, the fraudsters used money-laundering techniques, including frequently transferring assets between digital wallets and mixing them with other funds.

The investigations revealed that the perpetrators converted the majority of the stolen funds into USDC, a type of cryptocurrency issued by Circle Internet Financial LLC. Unlike volatile cryptocurrencies, USDC is a stablecoin, meaning it’s pegged to the U.S. dollar and backed by reserves of equal value.

After tracking the funds to specific digital wallets, the Walworth County Sheriff’s Office petitioned for, and a Walworth County Judge authorized, the freeze and seizure of the targeted wallets. Despite the court-ordered seizures, the sheriff's office said Circle Internet Financial LLC has declined to repatriate funds to the victims, citing a lack of established legal precedent. In the interim, Circle profits from the interest on the frozen funds.

The Walworth County Sheriff’s Office has now filed a criminal complaint for contempt of court against Circle.

Full article: Walworth Co. Sheriff's Office investigates investment fraud scheme