Stablecoin issuer Circle hit back against claims made by non-profit watchdog group Campaign for Accountability (CfA) accusing the firm of facilitating money laundering by terror financing.
The CfA sent a 13-page letter to U.S. Senators Sherrod Brown and Elizabeth Warren, alleging that Circle had a role in funding terrorist organizations Hamas and Hezbollah, based on data from a July crypto seizure carried out by the Israeli authorities.
The group also claimed that Circle had a “historical and ongoing relationship” with TRON founder Justin Sun, with the network supposedly connected with the majority of illicit activity funding. Earlier this week, Unchained reported that the TUSD stablecoin had dipped below its peg after reports that TRON was the blockchain of choice for terrorists.
In a Thursday letter to Warren and Brown, Circle’s head of global policy Dante Disparte refuted the CfA’s claims, saying their statements were replete with errors, omissions and misleading information.
“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,” said Disparte.
He added that Circle was a compliant organization, subject to multiple regulatory regimes including the Bank Secrecy Act (BSA) and other anti-money laundering laws, with a deep history of cooperating with law enforcement, even being recognized by the U.S. Secret Service for its support in identifying fraud.
With regards to the claims about Circle and Sun’s relationship, Disparate emphasized that neither the TRON founder nor any entity under his control had accounts with Circle, having terminated all accounts held by him in February.
“Moreover, Circle supports Senator Warren’s and Senator Marshall’s recent amendment to the National Defense Authorization Act to strengthen AML provisions in the digital assets industry,” said Disparte in a final statement.
“We also share broad agreement with Chairman Brown’s recent letter to U.S. regulators calling for a stronger disclosure regime in digital asset markets.”