The New York Attorney General has just exposed a design flaw in the GENIUS Act. Stablecoin issuers can freeze your funds indefinitely. They earn 4-5% returns on the frozen assets. They have no legal obligation to return these funds. Since 2023, Tether has frozen $3.3 billion. Circle currently has $114 million frozen. Both companies earn Treasury yields from the funds they seize. The Act does not require their return. The prosecutor stated, “Funds stolen or converted into USDT will never be frozen, seized, or returned.” This is their business model: freeze funds when it’s politically advantageous. Profit from the volatility of the funds. Never return any funds. 84% of illicit cryptocurrency flows are through stablecoins. In 2025 alone, illicit cryptocurrency flows reached $129 billion. The GENIUS Act is touted as a consumer protection law. In reality, it’s a legal barrier that allows issuers to profit from crime while victims get nothing. Section 4(b) takes precedence over state laws that may compel restitution. Section 2(16) grants the Treasury Department the power to seize, freeze, and destroy assets. The federal government can now order the permanent destruction of digital assets. Issuers will continue to earn proceeds until the assets are destroyed. Letitia James and four district attorneys have just told Congress that they have built a profit-making machine disguised as regulation. But nobody listened. $BTC