Circle, the firm behind USDC, rebuts accusations of links to Justin Sun and Hamas, emphasizing commitment to legal compliance.
Circle, the company responsible for USDC, has issued a comprehensive response to Senator Elizabeth Warren and Chairman Sherrod Brown, clarifying its position regarding connections to Justin Sun and allegations of funding Hamas. This response comes in the wake of a letter from the Campaign for Accountability on November 9, accusing Circle of neglecting to prevent illegal financial activities.
Denying Sun Links
In response to the Campaign's allegations, Circle vehemently denies any association with Justin Sun. Michelle Kuppersmith's letter suggested ties based on various reports, but Circle asserts that it has no accounts affiliated with Sun or his entities. Furthermore, Circle underscores its commitment to compliance by revealing the closure of accounts linked to Sun in February 2023. Sun had faced a lawsuit from the US Securities and Exchange Commission in March for alleged illegal securities sales.
Context of Senators' Concerns
Senators Warren and Brown had previously urged the Biden Administration to address concerns related to crypto-financed terrorism. This call followed a Wall Street Journal report on Hamas purportedly using cryptocurrency, although data provider Elliptic challenged these assertions, citing a lack of evidence.
Openness to Discussion
In its response, Circle expresses a willingness to engage in discussions with Senators Warren and Brown to address any concerns they may have. This proactive approach underscores Circle's commitment to adhering to legal regulations and fostering transparency.
While Circle maintains its innocence, the situation highlights the increasing scrutiny of cryptocurrency-related activities, necessitating a thorough examination of industry practices by regulatory bodies.