UpdatesDec 03, 2023

Circle denies accusations of financing terrorism

The issuer of the second largest stablecoin is defending itself against serious problems

Over the past few weeks, the issuer of the second-largest stablecoin has faced intense controversy regarding false accusations of significantly facilitating the financing of illegal operations, as well as links to popular cryptocurrency entrepreneur Justin Sun. The accusations came after Hamas's outrageous attack on Israel, prompting the nonprofit Campaign for Accountability (CfA) to send a letter to senators. In this letter, the indicated organization suggests the potential involvement of cryptographic companies in supporting terrorism.

Circle focuses on repelling the attack

In response to a number of allegations, Dante Disparte (Chief Strategy Officer and Global Policy Director at Circle) strongly emphasized that CfA's alleged claims are completely false and contain numerous errors, as well as further misleading information. The USDC issuer has made it very clear that it does not in any way facilitate the financing of Hamas or any illicit entities, and Justin Sun and his related companies, such as the Tron Foundation and Huobi Global, do not currently use Circle's banking services.

It is worth noting that at the February 2023 stage, Circle closed literally all accounts of Justin Sun, as well as companies associated with him. CfA's latest allegations regarding the continuing recent business ties between Circle and this individual have been strongly denied, and the company has made clear that it complies with all regulatory frameworks, including the Bank Secrecy Act and anti-money laundering and counter-terrorism financing regulations.

Relations between Circle and CfA

Michelle Kuppersmith, a member of CfA, recently drew attention to the surprising fact that a number of renowned financial institutions, such as Goldman Sachs and BlackRock, conduct numerous business deals with Circle. In response, the stablecoin issuer reminded all interested parties that it has long been under the supervision of the Financial Institutions Division of the Ohio Department of Commerce, and is also licensed to conduct both money and cryptocurrency transfers in many US states. Circle also further noted that it is regulated by FinCEN.

Despite a number of disturbing allegations, the USDC issuer continues to consistently maintain that it is ready for a public listing in the first months of 2024. All this confirms that the company is fully ready to submit to even more intensified supervision and transparency, which will most likely satisfy concerns about its operations.