USD Coin (USDC) stablecoin issuer Circle denies claims of illicit financing and ties to Tron founder Justin Sun
Circle, the issuer of USD Coin (USDC), has addressed allegations of illicit financing and connections to Tron founder Justin Sun. In an open letter posted on Circle’s blog, the company refutes the claims made by a nonprofit watchdog group called the Campaign for Accountability. Circle states that it does not facilitate or finance illicit actors like Hamas and does not provide financial services to Sun. The company also clarifies that it stopped working with Sun and his affiliated companies in February 2023. Circle’s response comes after the Campaign for Accountability accused the company of having extensive ties to Tron Foundation and Wall Street investors.
Dismissing allegations and clarifying actions
In the letter, Circle’s spokesperson states that they became aware of false claims made by the Campaign for Accountability. The spokesperson emphasizes that Circle does not support illegal activities or provide services to Sun. They dismiss the accusations of facilitating funds to Hamas or Hezbollah, stating that these claims are based on unverified social media posts. The spokesperson clarifies that only a small amount of money was transferred between illicit wallets using USDC, none of which came from Circle. Additionally, Circle terminated all accounts held by Sun and his affiliated companies in February 2023.
Response to terrorism financing claims
The open letter from Circle is part of a broader context where cryptocurrencies have been accused of financing terrorism since the Israeli-Hamas war began in October. The Wall Street Journal initially reported that over $130 million in crypto had been donated to terrorist organizations but later corrected the figure to $12 million. These allegations have raised concerns about the use of cryptocurrencies for illicit activities.
Hot Take: Addressing Allegations and Transparency in Crypto
Circle’s response to the allegations of illicit financing and ties to Justin Sun demonstrates the company’s commitment to transparency and compliance within the crypto industry. By addressing these claims directly, Circle aims to alleviate concerns and maintain trust among its users and partners. The incident also highlights the ongoing challenge of preventing cryptocurrency from being used for illicit purposes, especially in politically sensitive situations. As the industry continues to evolve, it is crucial for companies like Circle to demonstrate their dedication to regulatory compliance and responsible use of digital assets.
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