USDC stablecoin issuer Circle neither “finances Hamas” nor does it bank Tron blockchain founder Justin Sun, the fintech firm’s chief strategy officer has asserted. Although Circle had past business dealings with Sun, this ended in February 2023 when it terminated his accounts and those of affiliated companies.
Circle Subject to ‘Multiple Regulatory Regimes’
Circle, the issuer of the USDC stablecoin, has rejected allegations that it finances Hamas directly or indirectly, nor does it bank Tron blockchain founder Justin Sun. In a fiery open letter, Circle’s Chief Strategy Officer (CSO) Dante Disparte said his organization is “subject to multiple regulatory regimes” and the applicable anti-money laundering and terror funding laws.
In his formal letter addressed to U.S Senators Sherrod Brown and Elizabeth Warren, Disparte suggested that Circle felt obligated to respond to a Nov. 9 letter sent to the two politicians by the Campaign for Accountability. The letter reportedly detailed Circle’s close ties with Sun and Tron’s alleged financing of Hamas, Hezbollah, and the Palestinian Islamic Jihad.
In his pushback against Campaign for Accountability’s “false claims,” the Circle CSO referenced his organization’s long history in combating illicit finance activities as well as its partnership with law enforcement agencies. Disparte also addressed claims that the USDC stablecoin was among $93 million in digital currencies that had been marked for seizure by Israeli law enforcement.
“Most importantly, public blockchain ledgers show that of the $93 million in digital assets wallets identified by the Israeli government, only $160 was transferred in USDC among those wallets, and none of that was acquired from Circle,” Disparte said.
Regarding Circle’s relationship with Justin Sun, the CSO acknowledged that Circle had past dealings but suggested that this was above board because the U.S. government “has not specifically designated Sun or his entities as Specially Designated Nationals.” However, Disparte said Circle stopped dealing with Sun sometime in February 2023 when it terminated his accounts.
Disparte ends the letter by reiterating that his organization is willing to collaborate with the two Senators on ways to strengthen regulation in the digital assets space.
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