Circle, the issuer of the USD Coin stablecoin, has firmly refuted allegations of illicit financing and connections to Tron founder Justin Sun.
In an open letter posted on Circle’s blog on November 30, Circle’s Chief Strategy Officer and Head of Public Policy, Dante Disparte, addressed U.S. Senators Elizabeth Warren and Sherrod Brown regarding these accusations made by a nonprofit watchdog group.
Disparte revealed that Circle had recently become aware of what they considered to be “false” claims made by the “Campaign for Accountability.”
He emphatically stated that Circle does not, either directly or indirectly, facilitate or finance any illicit actors such as Hamas.
Furthermore, Circle does not provide banking or financial services to Justin Sun, refuting any association with him.
The allegations that Circle facilitated significant fund flows to organizations like Hamas or Hezbollah were also vehemently denied.
Disparte argued that these accusations were based on unverified social media posts and clarified that only a minor amount, $160 in USDC, was transferred among illicit wallets, none of which had any connection to Circle.
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Regarding Justin Sun, Disparte clarified that Circle had terminated all accounts held by him and his affiliated companies in February 2023.
Despite the lack of specific designation of Mr. Sun or his entities as Specially Designated Nationals by the U.S. government, Circle has severed its ties.
This open letter from Circle seems to be a response to a November 9 letter from the nonprofit ethics group Campaign for Accountability.
The latter had alleged that Circle had extensive ties to Justin Sun’s Tron Foundation and major Wall Street investors, with Sun’s cross-chain protocol, SunSwap, being used for potential money laundering.
In recent times, concerns have risen about the use of cryptocurrencies in financing terrorism, particularly since the Israeli-Hamas conflict in October.
Initially, reports suggested that over $130 million in crypto had been donated to terrorist organizations.
However, The Wall Street Journal later corrected its figures, indicating that $12 million in cryptocurrency “may have been” sent to these organizations.
In summary, Circle vehemently denies any involvement in illicit financing or ties to Justin Sun, as alleged by a nonprofit watchdog group.
They emphasize their commitment to adhering to legal and regulatory standards in the cryptocurrency space amidst ongoing concerns about crypto’s potential use in financing terrorism.
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