The Campaign for Accountability (CfA), a non-profit ethics group, has reinforced its allegations against Circle, the issuer of USD Coin (USDC).
In a newly published open letter dated December 14, the CfA reiterated its accusations that Circle’s activities might be facilitating money laundering and potentially funding terrorist organizations. These allegations were first raised in a November 9 letter to U.S. Senators Elizabeth Warren and Sherrod Brown.
The CfA’s renewed criticism specifically targets Circle’s Cross Chain Transfer Protocol (CCTP). This blockchain protocol enables users to transfer USDC across various networks, including Tron.
The CfA expresses concern that this functionality could be a gateway for illicit financial activities, citing Tron’s alleged past involvements in law enforcement actions related to organized crime and sanctioned entities.
Circle’s Response and Ongoing Concerns
In response to the initial CfA claims on November 11, Circle dismissed the allegations as uncorroborated and based on unverified social media posts.
However, the CfA’s latest letter suggests that Circle had a direct customer relationship with Justin Sun, a point they claim Circle has not adequately addressed.
In its November rebuttal, Circle stated that it terminated all accounts associated with Sun and his companies in February 2023.
The issue gains complexity with recent reports, including one by Reuters, suggesting Tron’s increasing use for transactions linked to groups identified as terrorist organizations by various countries. Aside from its November 11 statement, Circle has not commented further on these renewed allegations.
Also Read: Circle Refutes Allegations of Financing Hamas and Justin Sun
