Digital currency company Circle has firmly denied allegations that it has been involved in funding terrorist organizations. In a recent communication with U.S. Senators Sherrod Brown and Elizabeth Warren, Circle’s Chief Strategy Officer Dante Disparte addressed concerns raised by the Campaign for Accountability. The watchdog group had claimed in a 13-page letter that Circle is involved in laundering money for terror groups such as Hamas and Hezbollah. Disparte categorically denied these accusations, emphasizing Circle’s commitment to legal and ethical business practices.
Disparte’s response
Disparte’s response highlighted the inaccuracies in the allegations, pointing out that Circle does not have any direct or indirect involvement in financing such groups. He also clarified that the company does not provide banking services to Justin Sun, the founder of the blockchain platform TRON, dismissing any connections to Sun and his entities.
He noted that despite the U.S. government not designating Mr. Sun or his companies as Specially Designated Nationals, Circle proactively terminated all accounts associated with Sun and his affiliated companies in February 2023. This includes accounts related to the TRON Foundation and Huobi Global.
Circle’s vigilance against financial crimes
Circle also conveyed its adherence to high regulatory standards as a licensed money transmitter in 46 states, subject to stringent U.S. Bank Secrecy Act rules designed to combat money laundering. In his letter, Disparte highlighted Circle’s extensive cooperation with law enforcement agencies, including the U.S. Secret Service. The company was recently recognized for its efforts in identifying and combating fraud, including ‘pig-butchering’ scams and assisting in the recovery of funds.
In addition, Circle stated that its rigorous approach towards compliance and financial crimes is evident in its workforce, with many Circle employees having backgrounds in combating financial crimes at major U.S. agencies like the CIA, Treasury, and Justice Departments. Circle’s proactive stance on regulatory compliance is also reflected in its support for strengthening anti-money laundering regulations in the cryptocurrency sector.
Disparte also noted that Circle has been at the forefront of advocating for a comprehensive federal framework to regulate stablecoins. Disparte’s letter to the Senators included an invitation to discuss ways to enhance stablecoin oversight, emphasizing the need for stablecoin issuers to adhere to strict standards regarding reserves, disclosures, liquidity, and risk management.
