Digital Currency Company Circle Refutes Allegations of Funding Terrorist Organizations
Digital currency company Circle has strongly denied accusations made by a Washington watchdog group that it supports terrorist organizations. In a letter to Senate Banking Committee Chairman Sherrod Brown and Sen. Elizabeth Warren, Circle Chief Strategy Officer Dante Disparte disputed the claims made by the Campaign for Accountability, which alleged that Circle facilitates money laundering for groups like Hamas and Hezbollah. Disparte also refuted the group’s allegations linking China-based blockchain platform TRON and its founder Justin Sun to Circle.
Cooperation with Law Enforcement and Termination of Ties with Justin Sun
Disparte emphasized that Circle has cooperated extensively with law enforcement in combating financial crimes. He mentioned that Circle was recognized by the U.S. Secret Service for its support in identifying fraud instances and assisting in fund recovery. Addressing the ties to Justin Sun, Disparte stated that his company had terminated all accounts held by Sun and his affiliated companies earlier this year, including the TRON Foundation and Huobi Global.
Refuting Allegations of Terrorism Financing
In response to allegations of terrorism financing, Disparte stated that the Campaign for Accountability’s claims were filled with errors and misleading information. He countered their citation of stablecoins issued by Circle being identified in digital currency wallets linked to Palestinian Islamic Jihad, stating that only $160 worth of Circle’s USD Coin (USDC) stablecoin was transferred between those wallets. Disparte emphasized that none of those funds were acquired from Circle.
Compliance and Support for Stronger Regulations
Disparte highlighted that Circle adheres to high regulatory standards as a licensed money transmitter in 46 states, operating under U.S. Bank Secrecy Act rules for combating money laundering. He expressed Circle’s support for strengthening anti-money laundering rules for cryptocurrencies, endorsing recent legislation proposed by Warren and Sen. Roger Marshall. Disparte also mentioned that Circle has advocated for a comprehensive federal framework to govern stablecoins and requested a meeting with the staff of Brown and Warren to discuss bolstering stablecoin oversight.
Hot Take: Circle Defends Its Reputation Against Accusations of Funding Terrorism
Circle, a digital currency company, has firmly denied allegations made by the Campaign for Accountability that it supports terrorist organizations and facilitates money laundering. The company’s Chief Strategy Officer, Dante Disparte, refuted the claims and emphasized Circle’s cooperation with law enforcement in combating financial crimes. Disparte also clarified that Circle has severed ties with Justin Sun and his affiliated companies. He challenged the Campaign for Accountability’s citation of stablecoins issued by Circle in relation to terrorism financing, stating that the information was inaccurate and misleading. Disparte reiterated Circle’s commitment to compliance and its support for stronger regulations in the cryptocurrency industry.
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