[Multiple New York Prosecutors Accuse GENIUS Act of Enabling Stablecoin Issuers to Profit from Fraud] According to Foresight News, citing CNN, New York State Attorney General Letitia James and Manhattan District Attorney Alvin Bragg, along with four other prosecutors, jointly issued a letter stating that the GENIUS Act, signed last July, has failed to effectively protect fraud victims and has provided legal cover for stablecoin issuers to 'profit from fraud.' The prosecutors noted in the letter that while the act granted legitimacy to stablecoins, it allowed issuing companies to evade critical regulatory requirements necessary to combat terrorism financing, money laundering, and crypto-related fraud. The letter specifically named Tether and Circle, accusing the two companies of poor performance in assisting law enforcement with the seizure and return of funds, and profiting by investing frozen stolen funds. The report revealed that Circle and Tether each earned approximately $1 billion in 2024 through investments in reserve funds, including reserve assets backing stolen funds. As of last November, Circle had frozen funds totaling over $114 million.