Circle Dismisses False Claims and Denies Banking Services to Justin Sun and Tron Foundation
Circle, the stablecoin issuer, has responded to allegations of facilitating illicit financing activities and clarified that it does not provide banking services to Justin Sun, the Tron Foundation, or HTX. In a letter addressed to US Senators Sherrod Brown and Elizabeth Warren, Circle’s Chief Strategy Officer and Head of Global Policy refuted the claims made by the non-profit organization Campaign for Accountability (CfA), stating that their communication contained errors, omissions, and misleading information.
“Circle does not ‘bank’ Justin Sun. Neither Mr. Sun nor any entity owned or controlled by Mr. Sun currently have accounts with Circle. To date, the US government has not specifically designated Mr. Sun or his entities as Specially Designated Nationals. Nonetheless, Circle terminated all accounts held by Mr. Sun and his affiliated companies in February 2023.”
Debate Over Crypto Entities’ Involvement in Terrorist Financing
The debate surrounding the potential involvement of crypto entities in supporting terrorist financing has intensified since last month’s attack by Hamas on Israel. The CfA sent a letter to the Senators urging Congress to investigate the involvement of foreign and domestic crypto companies in financing terrorism. The CfA alleged that Circle and Tron founder Justin Sun maintained business ties despite controversies surrounding Sun’s history. They also claimed that Circle operated without proper regulatory review and approval.
Circle Assures Stringent Regulatory Compliance
Circle countered the allegations made by the CfA by emphasizing its strict regulatory compliance. The company is regulated by the Ohio Department of Commerce Division of Financial Institutions as a Money Transmitter and recognized as a Foreign Transmittal Agency by the Massachusetts Division of Banks. Circle holds licenses for Virtual Currency and Money Transmission from the New York Department of Financial Services and has approvals from 45 other US states and territories. Circle also complies with regulations enforced by FinCEN, OFAC, and sanctions imposed by the US, EU, UN, and other relevant regimes.
Hot Take: Circle Addresses False Claims and Highlights Regulatory Compliance
Circle has firmly dismissed false claims of facilitating illicit financing activities and denied providing banking services to Justin Sun and the Tron Foundation. The company has responded to allegations made by the Campaign for Accountability, stating that their communication contained errors and misleading information. Circle emphasized its adherence to various regulatory frameworks and highlighted its termination of all accounts held by Sun and his affiliated companies. Despite the allegations, Circle assured stringent regulatory oversight as a regulated entity in multiple US states and territories. The company’s commitment to compliance extends to recognized licenses, approvals, and adherence to sanctions imposed by relevant regimes.
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