Circle has refuted allegations linking it to terrorist financing and denies any affiliation with crypto entrepreneur Justin Sun or his associated companies, including Tron (TRX) and HTX (formerly Huobi).
In a letter addressed to Senators Sherrod Brown and Elizabeth Warren, Circle’s chief strategy officer and head of global policy, Dante Disparte, said claims by the Campaign for Accountability (CfA) that the stablecoin company’s USDC was involved in crypto terrorism financing were “full of errors, omissions”. , and misleading information.
Distance from the Sun
Circle has explicitly stated that it does not bank Sun and its companies, including HTX and the Tron Foundation.
The USDC stablecoin issuer clarified that it terminated all accounts associated with Sun as early as February despite the lack of a specific designation from the US government for them.
Circle’s stance follows recent reports that the Tron blockchain was increasingly being used to finance terrorist activities and organizations.
However, Sun defended blockchain by saying it has a decentralized structure similar to Bitcoin and Ethereum. He added that the network was “committed to the fight against the financing of terrorism by integrating various analytical projects and partners”.
Touts regulatory compliance
Circle further argued that it does not support or finance illicit actors like Hamas, directly or indirectly, and emphasized its compliance with necessary financial laws.
“Circle is subject to several regulatory regimes – including the Bank Secrecy Act (BSA) and applicable laws focused on anti-money laundering and counter-terrorist financing – and has strongly advocated for a prudential regulatory regime comprehensive federal government in the United States. » Disparte wrote.
Disparte highlighted the company’s efforts to combat illicit financing by working with regulators in various countries, including the United States and Israel, to prevent any illegal use of its stablecoin.
Disparte noted that Circle has also led efforts to establish a comprehensive federal framework to govern stablecoins. He added:
“Circle has consistently called for federal prudential regulation of stablecoins to ensure that every issuer must meet the highest standards for reserve, redemption, disclosure, liquidity and operational risk management”