Circle, a leading global financial technology firm, has recently come under fire from the so-called Campaign for Accountability (CfA) for its alleged role in facilitating illicit financing. In a letter to Senators Sherrod Brown and Elizabeth Warren, Circle’s Chief Strategy Officer and Head of Global Policy, Dante Disparte, refuted these claims and set the record straight on the company’s commitment to combating illicit finance.
Disparte categorically denied CfA’s assertion that Circle facilitates or finances any form of illicit activity, including Hamas. He also clarified that the exchange does not “bank” Justin Sun, nor does it have any accounts with him or his affiliated companies. In fact, the firm terminated all accounts held by Sun and his companies in February 2023.
Circle: Setting the Record Straight on Illicit Financing
Circle has a long-standing history of cooperating with regulators and law enforcement to combat illicit finance. The company has been recognized by the U.S. Secret Service for its efforts to identify and prevent fraud and scams. In addition, the firm adheres to strict regulatory requirements, including the Bank Secrecy Act (BSA) and anti-money laundering (AML) laws.
Disparte also addressed CfA’s claims that Circle financed Hamas or Hezbollah. He pointed out that CfA’s reliance on a report by the blockchain firm Elliptic was misleading, as the report itself acknowledged that only a small fraction of the funds in question were USDC. Moreover, none of those funds were acquired from the exchange.
In response to CfA’s accusations, Circle has reaffirmed its commitment to combating illicit finance and to working with regulators to develop a comprehensive regulatory framework for stablecoins. The company has consistently advocated for strong reserving, redemption, disclosure, liquidity, and operational risk management standards for stablecoin issuers.
Circle’s response to CfA’s allegations underscores the company’s dedication to transparency and compliance. The company’s commitment to combating illicit finance and its support for robust regulatory oversight are essential steps toward building a more secure and trustworthy digital assets ecosystem.