Circle has denied the Accountability Campaign’s accusations about its business practices. Circle is a global fintech company that facilitates online payments and the digital currency USDC.
Circle sent an open letter to Sen. Elizabeth Warren and Chairman Sherrod Brown on Thursday defending itself against accusations that it funded Justin Sun and, respectively, Hamas.
The CFA, led by Michelle Kuppersmith, claims there is a link between Circle and Sun and relies on research to support its accusations. But Circle clarified that they do not do business with Sun or any of its organizations, including Huobi Global or the TRON Foundation.
Circle: Legal commitments and dissolution of relationship with Justin Sun
The company made it clear that it has nothing to do with any terrorist organizations or illegal actors, stressing that it is committed to operating lawfully. The company provided further clarification regarding Mr. Sun and his related organizations.
Although the U.S. government has not designated Sun or its entities as Specially Designated Nationals, Circle promptly deleted all accounts associated with Sun and its businesses in February 2023.
Dante Disparte, chief strategy officer and head of public policy at Circle, said claims that the stablecoin issuer is “sending significant amounts of money to Hamas or Hezbollah” are baseless and unsubstantiated, denying the accusations.
Dupat detailed in his book:
“Let us be completely clear: Circle does not directly or indirectly promote or fund Hamas (or any other illegal actor) […] Circle also does not provide banking services to Justin Sun. “
USDC market cap currently at $24.487 billion on the daily chart: TradingView.com
In addition, Disparte said that public blockchain records show that a total of 26 wallets only received Circle’s stablecoin USDC, worth $160. Furthermore, he clarified that this has nothing to do with access to these funds.
Sun’s legal woes: SEC complaints and cryptocurrency regulatory challenges
Sun is facing legal action related to these incidents. The SEC filed a complaint against him in March, accusing him of selling two crypto-asset securities without prior registration. As the lawsuit highlights, individuals and businesses continue to encounter regulatory hurdles in the ever-changing cryptocurrency landscape.
Concerns that cryptocurrencies may be used to finance illegal activities have fueled the current discussion. In the context of cryptocurrency funding of terrorism, Senators Warren and Brown strongly urged the Biden administration to address the issue.
Their concerns stem in part from a Wall Street Journal article that claimed without providing evidence that Elliptic, the report’s data source, denied that Hamas used cryptocurrencies to fund attacks on Israel.
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