Circle, a leading stablecoin company, has vehemently denied allegations linking it to terrorist financing. In a letter addressed to Senators Sherrod Brown and Elizabeth Warren, Circle’s Chief Strategy Officer and Head of Global Policy, Dante Disparte, refuted the claims made by the Campaign for Accountability (CfA) that the company’s USDC stablecoin was involved in crypto terror funding. Disparte stated that the allegations made by CfA were “replete with errors, omissions, and misleading information.”
One of the main claims made by CfA was that Circle had affiliations with crypto entrepreneur Justin Sun and his associated companies, including Tron (TRX) and HTX (formerly Huobi). However, Circle explicitly stated that it does not bank Sun and his companies, including Tron Foundation. Despite the lack of specific designation by the U.S. government, Circle terminated all accounts associated with Sun as far back as February.
The allegations against Circle were fueled by recent reports suggesting that the Tron blockchain was being increasingly used to finance terrorist activities. However, Sun defended the blockchain, stating that it has a similar decentralized structure to Bitcoin and Ethereum. He also highlighted the network’s commitment to combating terrorist financing by integrating different analysis projects and partners.
Circle further refuted the claim that it supports or finances illicit actors like Hamas, directly or indirectly. The company emphasized its compliance with necessary financial laws and regulatory regimes, including the Bank Secrecy Act (BSA) and laws focused on anti-money laundering and countering the financing of terrorism. Disparte highlighted Circle’s collaboration with regulators in various countries, including the United States and Israel, to prevent unlawful use of its stablecoin.
In addition to its efforts to combat illicit finance, Circle has been at the forefront of advocating for a comprehensive federal prudential regulatory regime in the United States to govern stablecoins. The company believes that a clear regulatory framework is essential to ensure the integrity and safety of the stablecoin market.
The refutation by Circle serves to clarify its position and distance itself from any allegations of terrorist financing. With the rise of cryptocurrencies, it is crucial for companies and individuals associated with the industry to address and debunk false claims promptly. Circle’s denial of these allegations and its commitment to compliance and collaboration with regulators demonstrate its dedication to maintaining a secure and transparent ecosystem for its stablecoin users.
Circle’s strong response to the allegations linking it to terrorist funding, as well as its denial of any affiliation with Justin Sun and his companies, showcases the company’s commitment to upholding the highest standards of compliance and regulatory adherence. As the stablecoin market continues to evolve, it is essential for companies like Circle to take a proactive approach in addressing any false claims and working closely with regulators to ensure the integrity and legitimacy of their operations.
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