Circle Defies Allegations: No Illicit Financing Links And Justin Sun Ties

Circle has denied the claims made by the Campaign for Accountability about its business practices. Circle is a global financial technology company that facilitates online payments and the digital money USDC.

Defending itself against allegations that it banked Justin Sun and, separately, had funded Hamas, Circle sent a public letter to Senator Elizabeth Warren and Chairman Sherrod Brown on Thursday.

Claiming connections between Circle and Sun, the CFA, headed by Michelle Kuppersmith, relied on research and studies to back up its accusations. But Circle clarified that they are not doing business with Sun or any of his organizations, including Huobi Global or the TRON Foundation.

Circle: Legal Commitment And Disassociation From Justin Sun

The company made clear that it was not affiliated with any terrorist organizations or illegal actors, underscoring its dedication to legal operations. Regarding Sun and his related organizations, the corporation provided further clarification.

Circle promptly deleted all accounts linked to Sun and his enterprises in February 2023, even though the US government had not yet designated Sun or his entities as Specially Designated Nationals.

According to Dante Disparte, chief strategy officer and head of public policy of Circle, the suggestion that the stablecoin issuer enabled “large flows of monies to Hamas or Hezbollah” is baseless and unsubstantiated, and he has rejected the allegations.

In his writing, Disparte detailed:

“Let us be perfectly clear: Circle does not facilitate, directly or indirectly, or finance Hamas (or any other illicit actors) […] nor does Circle bank Justin Sun.”

USDC market cap currently at $24.487 billion on the daily chart: TradingView.com

Additionally, Disparte said that the public blockchain records reveal that a total of 26 wallets only received USDC, the stablecoin from Circle, with a value of $160. Also, he clarified that it had nothing to do with the acquisition of those money.

Sun’s Legal Woes: SEC Complaint And Crypto Regulatory Challenges

Sun is facing legal action in relation to these occurrences. The US Securities and Exchange Commission filed a complaint against him in March for selling two crypto asset securities without first registering them. In the ever-changing cryptocurrency sector, people and businesses continue to encounter regulatory hurdles, as this lawsuit highlights.

Concerns regarding the potential use of cryptocurrencies for illicit funding have given rise to the current discussion. In the context of crypto-financed terrorism, senators Warren and Brown have strongly urged the Biden administration to address this issue.

Their worries stemmed in part from an article in the Wall Street Journal that claimed, without providing evidence, that Elliptic, the report’s data source, had denied that Hamas had utilized cryptocurrency to finance attacks on Israel.

Featured image from Freepik

Jos Tran
Show full profile

Jos Tran

I'm Jos Tran, the author behind Smart Passive Income (SPI), a blog dedicated to online business and entrepreneurship. I started this blog in 2008, following in the footsteps of Pat Flynn, the founder. Being one of the leading business blogs globally, SPI attracts over 2 million readers each month. Through my content, I aim to assist individuals in generating passive income from various online sources. Join me on this transformative journey as we delve into the world of online business and uncover the strategies and tactics that have led to tremendous success for myself and countless others.

We will be happy to hear your thoughts

Leave a reply

Smart Passive Income
Logo