Circle denies allegations of illicit financial activities

Circle has publicly refuted allegations of improper banking relationships and financing of illicit activities in a detailed response to concerns raised by Senators Elizabeth Warren and Sherrod Brown.

The Nov. 30 letter, crafted by Circle’s Chief Strategy Officer Dante Disparte, responds to claims from the Campaign for Accountability, which accused Circle of facilitating illicit financial activities, including banking Justin Sun and financing Hamas.

The Campaign for Accountability, led by Michelle Kuppersmith, based its allegations on studies and reports, suggesting ties between Circle and Sun. However, Circle’s response is clear: they have no current accounts with Sun or his entities, including the TRON Foundation or Huobi Global.

They also noted that the U.S. government has not designated Sun or his companies as ‘specially designated nationals’, although Circle terminated their accounts in February 2023.

This controversy emerges amidst broader concerns about the role of cryptocurrencies in illegal finance. Senators Warren and Brown have been vocal in urging the Biden Administration to address this issue, particularly in the context of crypto-financed terrorism.

Their concerns were partly based on a Wall Street Journal report suggesting that Hamas used crypto to fund attacks on Israel, a claim later disputed by Elliptic, the data source for the report.

Circle’s stance is firm yet open for dialogue, extending an offer to discuss these matters with the two Senators.