Nonprofit Ethics Group Accuses Circle of Facilitating Terrorism Funding
The nonprofit ethics group Campaign for Accountability (CfA) has reiterated its claims against Circle, accusing the USD Coin (USDC) issuer of facilitating the funding of terrorist organizations. CfA published an open letter on Dec. 14 addressed to United States Senators Elizabeth Warren and Sherrod Brown, doubling down on its previous allegations. The letter specifically targeted Circle’s Cross Chain Transfer Protocol (CCTP), claiming that it could be used to facilitate illicit finance in the digital asset space. It also mentioned Circle’s relationship with Tron, a network involved in alleged organized crime activities and sanctioned entities. Circle has not commented further on the matter.
New Evidence Emerges Against Tron
CfA’s open letter cited recent evidence against Tron, stating that the network has become a platform for crypto transfers associated with designated terror organizations by various countries. The evidence came from a Reuters article that interviewed financial crime experts and blockchain investigations specialists. This development adds to the scrutiny surrounding Tron and its involvement in potential money laundering activities. However, Elliptic, a blockchain analytics platform, previously claimed that media outlets exaggerated the value of these transactions when reporting on Tron’s role in money laundering for terrorist groups.
Hot Take: Circle Faces Allegations of Enabling Terrorism Funding
The nonprofit ethics group Campaign for Accountability has accused Circle, the issuer of USD Coin (USDC), of facilitating the funding of terrorist organizations through its Cross Chain Transfer Protocol (CCTP). In an open letter addressed to U.S. Senators Elizabeth Warren and Sherrod Brown, CfA claimed that Circle’s protocol could be exploited for illicit finance. The letter also highlighted Circle’s relationship with Tron, a network involved in alleged organized crime activities and sanctioned entities. With new evidence emerging against Tron, the scrutiny surrounding Circle and its connections intensifies. Circle has not provided further comments on the matter, leaving these allegations unanswered.
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