According to an open letter published on Circle’s blog, the company has not been serving Justin Sun since February.
USDC distributor Circle denied allegations of illegal financing and connections with Justin Sun in an open letter published on its blog site. A non-profit observer group had previously accused Circle of having ties with Sun.
The post was published on November 11 and changed on November 30. The letter was addressed to US Senators Elizabeth Warren and Sherrod Brown. It was signed by Circle’s Chief Strategy Officer and Head of Public Policy, Dante Disparte.
In the letter, Disparte claims that Circle was recently made aware of the “false” allegations made about him by the “so-called Responsibility Campaign”. The letter also adds:
“Circle does not directly or indirectly facilitate or finance Hamas (or other illegal actors).”
Disparte also denied that he was “banking” for Sun or providing financial services to him.
Disparte denied allegations that Circle facilitated a “large flow of funds to Hamas or Hezbollah.” He claims instead that these accusations are based on unverified, unverified posts on social media. The letter states that “only $160 in USDC was transferred between [illegal wallets]”, and that “none of these were received from Circle”.
Disparte also claimed that Circle had stopped serving Sun in February 2023, saying:
Neither Mr. Sun nor any organization owned or controlled by Mr. Sun (including the TRON Foundation or Huobi Global) currently has an account at Circle. To date, the US government has not specifically appointed Mr. Sun or his organizations as Specially Designated Nationals. However, Circle terminated all accounts owned by Mr. Sun and his affiliated companies in February 2023.
The open letter from Circle appears to have been sent in response to a letter dated November 9 from the non-profit ethics group Campaign for Accountability. This letter claimed that Circle has extensive ties with Sun’s Tron Foundation and leading Wall Street investors and that Sun has cross-chain connections. SunSwap protocol is often used for money laundering purposes.
Claims of cryptocurrency being used to finance terrorism have proliferated since the beginning of the Israel-Hamas war. On October 10, The Wall Street Journal reported that over $130 million in cryptocurrency had been donated to terrorist organizations. The media organization later corrected the story, indicating instead that $12 million in cryptocurrency “may have been sent” to these organizations.