Watchdog Group Intensifies Claims Against Circle and Tron
CfA intensifies allegations against Circle and Tron, citing concerns over CCTP and links to terrorist funding activities.
Recently, the nonprofit ethics group Campaign for Accountability (CfA) has reiterated its allegations against Circle, the issuer of USD Coin (USDC). On December 14, CfA released an open letter, intensifying its claims that Circle is involved in activities facilitating terrorist funding. This follows their initial accusation on November 9, addressed to US Senators Elizabeth Warren and Sherrod Brown.
Circle’s Past Ties with Justin Sun Examined
The core of the CfA’s latest allegations centers around Circle’s use of the Cross Chain Transfer Protocol (CCTP). This technology allows the transfer of USDC across various blockchain networks, including Tron. The CfA’s executive director, Michelle Kuppersmith, highlighted concerns in the letter, suggesting that the CCTP might be a conduit for illicit financial activities.
The letter highlighted Tron’s history of involvement in law enforcement actions related to organized crime and sanctioned entities. Tron founder Justin Sun, who had previously faced allegations of money laundering in 2019, has denied these claims.
The CfA’s letter also shed light on Circle’s business dealings with Justin Sun. Kuppersmith noted that Circle had acknowledged a previous customer relationship with Sun. However, Circle’s head of public policy, Dante Disparte, indicated that Circle had ceased all business with Sun and his affiliated companies as of February 2023. This admission by Circle has raised questions about the nature and extent of its past interactions with Sun.
According to a Reuters report cited by the CfA, Tron has reportedly become a preferred platform for crypto transfers linked to groups designated as terrorists by various countries, including Israel and the United States. Insights from financial crime experts and blockchain investigations specialists supported this claim. $TRX $USDC #Trx #USDCoin
