Circle denies terror finance allegations and ties to Justin Sun

Circle has refuted allegations of ties to terrorist financing, denying any ties to cryptocurrency entrepreneur Justin Sun and related companies such as Tron (TRX) and HTX (formerly Huobi).

in letter In the letter, addressed to Sens. Sherrod Brown and Elizabeth Warren, Dante Disparte, Circle’s chief strategy officer and head of global policy, accuses stablecoin company USDC of involvement in crypto terrorist financing. It said the Campaign for Accountability’s (CfA) claims were “full of errors and omissions”. , misleading information. ”

distance from the sun

Circle specifically stated that it does not treat Sun and his companies, including HTX and the Tron Foundation, as banks.

The USDC stablecoin issuer revealed that it had suspended all accounts associated with Sun as of February, even though the U.S. government had not made a specific designation.

Circle’s position follows recent reports that the Tron blockchain is increasingly being used to finance terrorist activities and organizations.

However, Sun defended blockchain, saying it has a decentralized structure similar to Bitcoin and Ethereum. The network is “committed to combating terrorist financing by integrating various analytical projects and partners,” it added.

Promote regulatory compliance

The Circle further asserted that it does not directly or indirectly support or finance illegal actors such as Hamas, and stressed its compliance with necessary financial laws.

“Circle is subject to multiple regulatory regimes, including the Bank Secrecy Act (BSA) and applicable laws focused on anti-money laundering and counter-terrorism financing, and is subject to a comprehensive federal prudential regulatory regime in the United States. ,” Disparte wrote.

Disparte noted that the company is working with regulators in countries including the United States and Israel to combat illicit finance in order to prevent the illegal use of stablecoins.

Disparte noted that Circle is also leading efforts for a comprehensive federal framework to govern stablecoins. he added:

“Circle consistently enforces federal prudential regulations for stablecoins to ensure that all issuers must meet the highest reserve, redemption, disclosure, liquidity, and operational risk management standards. I have requested it.”

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