In a decisive response to allegations, Circle, a prominent player in the digital currency realm, has categorically denied any involvement in terrorist financing and dismissed claims of its association with blockchain entrepreneur Justin Sun.
The firm’s Chief Strategy Officer, Dante Disparte, addressed these issues in a detailed letter to U.S. Senators Elizabeth Warren and Sherrod Brown, emphasizing Circle’s commitment to compliance and its strong stance against any illicit activities.
Circle’s Stance on Allegations of Terrorist Financing & A Dismissal of Ties with Justin Sun’s TRON
The allegations, brought forth by the Campaign for Accountability (CfA), suggested that Circle’s stablecoin, USD Coin (USDC), was used to fund terrorist activities, specifically pointing to a seizure of digital assets by Israeli authorities linked to the Palestinian Islamic Jihad.
However, Disparte refuted these claims, stating that public blockchain records showed only a nominal amount of USDC ($160) transferred among the wallets in question, and none of these funds originated from Circle.
Using @SenWarren 'logic' (term used extremely loosely), the presence of US dollars in funds seized from Hamas and other terrorist groups means those terrorists are being funded by the US gov't.
Elizabeth Warren has abused her power long enough.https://t.co/32m0WMw8AB
— john newman (@johnnew33958569) December 1, 2023
He emphasized that the CfA’s allegations were riddled with inaccuracies, lacking corroboration or verification.
The CfA’s letter also implied a connection between Circle and Justin Sun, billionaire founder of the TRON Foundation and a controversial figure in the cryptocurrency space.
Disparte clarified that Circle had severed all ties with Sun and his affiliated companies, including the TRON Foundation and Huobi Global, as of February 2023.
He further noted that neither Sun nor his entities were designated as Specially Designated Nationals by the U.S. government, underscoring the pre-emptive nature of Circle’s decision to terminate these associations.
Circle’s Regulatory Compliance and Advocacy for Stablecoin Regulation
Highlighting Circle’s robust regulatory framework, Disparte explained that the company operates as a licensed money transmitter in 46 states and complies with U.S. Bank Secrecy Act rules aimed at combating money laundering.
He outlined Circle’s proactive approach in assisting law enforcement agencies, including recent recognition by the U.S. Secret Service for aiding in fraud identification and fund recovery.
Disparte also underscored Circle’s advocacy for stringent federal regulation of stablecoins, calling for high standards in reserving, disclosures, liquidity, and risk management.
In conclusion, Circle’s firm stance in the face of these allegations reflects its commitment to maintaining high standards of compliance and transparency.
The company’s proactive measures in cutting ties with potentially controversial figures and its active role in shaping regulatory frameworks for stablecoins demonstrate its dedication to fostering a secure and trustworthy digital currency environment.
Disparte’s letter not only rebuts the claims but also reaffirms Circle’s role as a responsible and vigilant entity in the increasingly mainstream world of digital finance.