United

Bank AI

USDC

<a href="https://cryptoslate.com/companies/circle/" rel="noopener noreferrer nofollow">Circle</a>&nbsp;has refuted allegations linking it to terrorist funding and denies affiliation with crypto entrepreneur <a href="https://cryptoslate.com/people/justin-sun/" rel="noopener noreferrer nofollow">Justin Sun</a> or his associated companies, including Tron (<a href="https://cryptoslate.com/coins/tron/" rel="noopener noreferrer nofollow">TRX</a>) and <a href="https://cryptoslate.com/companies/htx/" rel="noopener noreferrer nofollow">HTX</a> (formerly Huobi).
In a <a href="https://www.circle.com/blog/circle-refutes-false-claims-on-illicit-financing" rel="noopener noreferrer nofollow">letter</a> addressed to Senators Sherrod Brown and <a href="https://cryptoslate.com/people/elizabeth-warren/" rel="noopener noreferrer nofollow">Elizabeth Warren</a>, Circle’s Chief Strategy Officer and Head of Global Policy, Dante Disparte, stated that the Campaign for Accountability’s (CfA) claims that the stablecoin company’s USDC was involved in crypto terror financing were “replete with errors, omissions, and misleading information.”
<h2 id="distances-self-from-sun">Distances self from Sun</h2>
Circle explicitly stated that it does not bank Sun and his companies, including HTX and Tron Foundation.
The <a href="https://cryptoslate.com/coins/usd-coin/" rel="noopener noreferrer nofollow">USDC</a> stablecoin issuer clarified that it had terminated all accounts associated with Sun as far back as February despite the U.S. government’s lack of specific designation for them.
Circle’s stance follows recent reports that the Tron blockchain was increasingly being used to finance terrorist activities and organizations.
However, Sun defended the blockchain saying it has a similar decentralized structure to <a href="https://cryptoslate.com/coins/bitcoin/" rel="noopener noreferrer nofollow">Bitcoin</a>&nbsp;and <a href="https://cryptoslate.com/coins/ethereum/" rel="noopener noreferrer nofollow">Ethereum</a>. He added that the network was “committed to combating terrorist financing by integrating various analysis projects and partners .”
<h2 id="span-style-color-333333-font-size-22px-font-weight-bold-touts-regulatory-compliance-span">Touts regulatory compliance</h2>
Circle further argued that it does not support or finance illicit actors like Hamas, directly or indirectly, and <a href="https://cryptoslate.com/circle-ceo-praises-u-s-stablecoin-bill-in-remarks-prepared-for-congress/" rel="noopener noreferrer nofollow">highlighted</a> its compliance with the necessary financial laws.
<blockquote>
 “Circle is subject to multiple regulatory regimes – including the Bank Secrecy Act (BSA) and applicable laws focused on anti-money laundering and countering the financing of terrorism – and has forcefully advocated for a comprehensive federal prudential regulatory regime in the United States,” Disparte wrote.
</blockquote>
Disparte pointed out the firm’s efforts to combat illicit finance by collaborating with regulators in various countries, including the U.S. and Israel, to prevent any unlawful use of its stablecoin.
Disparte noted that Circle has also led <a href="https://cryptoslate.com/circle-ceo-says-stablecoin-regulation-should-not-be-assigned-to-u-s-sec/" rel="noopener noreferrer nofollow">efforts</a> for a comprehensive federal framework to govern stablecoins. He added:
<blockquote>
 “Circle has consistently called for federal prudential regulation of stablecoins to ensure that every issuer must meet the highest reserving, redemption, disclosure, liquidity, and operational risk management standards”
</blockquote>
The post <a href="https://cryptoslate.com/circle-denies-terror-finance-claims/" rel="noopener noreferrer nofollow">Circle denies terror finance allegations and ties to Justin Sun</a> appeared first on <a href="https://cryptoslate.com" rel="noopener noreferrer nofollow">CryptoSlate</a>.

Circle denies terror finance allegations and ties to Justin Sun

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