NewsletterJust In: Circle Denies Illicit Financing, Cuts Ties with Justin Sun and TRON
In a decisive move to clarify its position, Circle has categorically denied allegations of involvement in illicit financing activities. This firm stance was outlined in a detailed letter addressed to U.S. Senators Sherrod Brown and Elizabeth Warren. The letter explicitly negates claims of providing banking services to prominent crypto figure Justin Sun, the TRON Foundation, or Huobi Global, now known as HTX.
Circle Draws Clear Lines in Finance
Circle emphasized its commitment to lawful operations, firmly stating its non-involvement with any illicit actors, including Hamas. The company further clarified its position regarding Justin Sun and his affiliated entities.
Despite no specific designation of Sun or his entities as Specially Designated Nationals by the U.S. government, Circle proactively terminated all accounts associated with Sun and his companies in February 2023. This move highlights Circle’s stringent adherence to legal and ethical banking practices.
Refuting Claims of Illicit Financing
The context of Circle’s assertive response stems from allegations made by the Campaign for Accountability. This group had previously urged Senators Brown and Warren to investigate the potential role of Justin Sun, his blockchain venture TRON, and Circle in financing terrorist organizations.
These allegations, which Circle vehemently denies, have placed crypto finance under a scrutinizing lens, especially concerning the funding of terror groups.
Legal Challenges in the Crypto Sphere
The backdrop of these developments includes legal actions against Justin Sun. In March, the Securities and Exchange Commission initiated a lawsuit against him over the unregistered offer and sale of two crypto asset securities. This lawsuit underscores the ongoing regulatory challenges individuals and entities face in the rapidly evolving crypto market.
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