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Circle denies claims of illicit financing and ties to Justin Solar

USDC stablecoin issuer Circle has denied claims of illicit financing and ties to Tron founder Justin Solar, in accordance with an open letter accessed from Circle’s weblog on Nov. 30. A non-profit watchdog group beforehand accused Circle of getting ties to Solar.

Circle open letter to U.S. senators Elizabeth Warren and Sherrod Brown. Supply: Circle.

The submit was printed on Nov. 11 and modified on Nov. 30, however Cointelegraph couldn’t decide the publication date of the letter itself. The letter was addressed to U.S. senators Elizabeth Warren and Sherrod Brown and signed by Circle chief technique officer and head of public coverage Dante Disparte.

Within the letter, Disparte claimed that Circle has “not too long ago grew to become conscious” of “false” claims being made about it by the “so-called Marketing campaign for Accountability (“CfA”). Circle “doesn’t facilitate, straight or not directly, or finance Hamas (or every other illicit actors),” Disparte said. As well as, it doesn’t “financial institution” or present monetary companies to Justin Solar, he claimed.

Disparte dismissed the allegation that Circle facilitated “main flows of funds to Hamas or Hezbollah,” claiming as an alternative that these accusations are primarily based on uncorroborated, unverified posts to social media. “Solely $160 was transferred in USDC amongst [illicit wallets]” the letter said, including that “none of that was acquired from Circle.”

Disparte additionally claimed that Circle stopped offering companies to Justin Solar in February, 2023, stating:

“Neither Mr. Solar nor any entity owned or managed by Mr. Solar, together with the TRON Basis or Huobi International, presently have accounts with Circle. To this point, the U.S. authorities has not particularly designated Mr. Solar or his entities as Specifically Designated Nationals. Nonetheless, Circle terminated all accounts held by Mr. Solar and his affiliated firms in February 2023.”

The open letter from Circle seems to have been despatched in response to a Nov. 9 letter from the non-profit ethics group Marketing campaign for Accountability (CfA). CfA’s letter claimed that Circle has extensive ties to Justin Sun’s Tron Foundation and main Wall Avenue traders and that Solar’s cross-chain protocol, SunSwap, is usually used for cash laundering.

Associated: WSJ debacle fueled US lawmakers’ ill-informed crusade against crypto

Claims that crypto is getting used to finance terrorism have been commonplace because the Israeli-Hamas struggle broke out on Oct. 7. On Oct. 10, The Wall Avenue Journal reported that “over $130 million” of cryptocurrency had been donated to terrorist organizations. The media outlet later corrected its story, stating as an alternative that $12 million in crypto “might have been” despatched to those organizations.