Circle Firmly Denies Allegations of Illicit Banking and Financing Activities

Circle has strongly denied claims of improper banking dealings and funding of illegal activities, responding comprehensively to concerns raised by Senators Elizabeth Warren and Sherrod Brown. In a letter dated November 30, authored by Circle’s Chief Strategy Officer Dante Disparte, the company addressed accusations from the Campaign for Accountability. This group, led by Michelle Kuppersmith, charged Circle with engaging in illicit financial activities, including doing business with Justin Sun and funding Hamas.

The Campaign for Accountability’s accusations were based on various studies and reports, hinting at a connection between Circle and Sun. However, Circle clearly stated that they have no ongoing business with Sun or his related organizations, including the TRON Foundation or Huobi Global. They also highlighted that neither Sun nor his businesses have been labeled as ‘specially designated nationals’ by the U.S. government, though Circle ceased their business dealings with them in February 2023.

This dispute arises against a backdrop of broader concerns about the use of cryptocurrencies in illegal financial activities. Senators Warren and Brown have actively urged the Biden Administration to tackle this issue, particularly regarding the financing of terrorism through cryptocurrencies.

Their apprehensions were partially fueled by a Wall Street Journal article suggesting that Hamas had used cryptocurrencies to finance attacks on Israel. This claim was later challenged by Elliptic, the data provider for the report.

Circle remains steadfast in their position but is open to further discussions, offering to engage in dialogue with the two Senators about these issues.

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