On Tuesday, September 8, 2026, Circle Internet Financial, LLC, issuer of stablecoin USD Coin (USDC), filed a formal response to an amended complaint lodged by plaintiff Lori Fitzgerald.
Fitzgerald, a resident of Belmont, New Hampshire, is pursuing legal action seeking the recovery of 81,147 USDC, which she alleges were stolen from her custodial wallet managed by crypto.com on August 15, 2021.
In its answer, Circle generally denied all allegations presented in Fitzgerald’s complaint, except for those specifically admitted. The company confirmed its status as a Delaware limited liability company and an issuer of USDC, a payment stablecoin designed to maintain a value of one U.S. dollar per coin.
Fitzgerald’s amended complaint details how a hacker allegedly accessed her account and transferred the USDC to a series of Ethereum wallet addresses, with the funds ultimately remaining in a wallet address that ends with Fb39B. She claims to have provided blockchain transaction records to law enforcement, confirming the traceable nature of the theft.
The legal filings reveal a history of attempts by Fitzgerald to recover the stolen assets. She reportedly sought assistance from local law enforcement, but they ultimately declined due to a lack of expertise in the matter. Subsequently, Fitzgerald initiated a replevin action in the Belknap County Superior Court, naming Circle as the defendant. The court issued an order directing Circle to freeze or blacklist the wallet address holding the stolen USDC, an order Circle admits to complying with, stating the blocklist remains operative.
The case was later removed to the U.S. District Court for the District of New Hampshire, where Circle filed a motion to dismiss for lack of personal jurisdiction. Following Fitzgerald’s objection and a motion to change venue, the case was transferred to the U.S. District Court for the District of Massachusetts.
Circle’s response highlights its technical and legal capacity to freeze or blacklist USDC tokens and release their value when ordered by a court, referencing its Access Denial Policy. The company also acknowledges the enactment of the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) on July 18, 2025, which mandates payment stablecoin issuers to comply with lawful court orders, including those directing the seizure, freezing, or prevention of transfer of payment stablecoins.
Despite acknowledging these capabilities, Circle denies Fitzgerald’s entitlement to any relief. The company asserts several affirmative defenses, including failure to join indispensable parties, laches, the existence of an adequate remedy at law, comparative fault, unclean hands, and the statute of limitations.
Circle contends that it had no role in causing Fitzgerald’s injury, has never had a relationship with her, and did not issue the USDC in question directly to her. The company further argues that Fitzgerald’s delay in seeking relief has prejudiced Circle and that she failed to pursue the individuals who allegedly stole and control the USDC.
The legal proceedings underscore the complexities surrounding digital asset recovery and the evolving regulatory landscape for stablecoins. The court’s ultimate decision will hinge on the interpretation of relevant laws and the facts of the case.
Please contact BlockTribune for access to a copy of this filing.
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