Campaign for Accountability (CfA) Alleges Circle’s Involvement in Terrorist Financing

Campaign for Accountability (CfA) is a non-profit organization that monitors ethics in the United States. Recently, CfA contacted US Senators Elizabeth Warren and Sherrod Brown regarding potential links between Circle, the USD Coin (USDC) issuer, and terrorist financing activities.

Circle Suspected of Collaborating with TRON

In a letter dated November 9, CfA raised concerns about the integration of Circle with TRON, a network engaged in legal disputes. The organization highlighted the potential exploitation of cryptocurrencies for money laundering, an issue that was also addressed in a letter signed by Warren, Brown, and over 100 legislators to National Security Advisor and Treasury Undersecretary.

CfA referenced law enforcement reports suggesting that Circle, a US-based cryptocurrency company, could be indirectly or directly involved in suspicious activities due to its affiliation with TRON, an Asian-based network embroiled in international legal battles.

CfA’s Findings on USDC and TRON

CfA noted that more than $400 million worth of USDC has been present in the TRON ecosystem, raising concerns about the network’s involvement in billion-dollar transactions by suspected criminal groups and internationally sanctioned entities.

For example, in July 2023, the National Bureau for Counter-Terror Financing of Israel issued an asset seizure directive targeting the Palestinian Islamic terrorist group Jihad. The directive identified 26 TRON wallets containing a total value of $93 million in different assets, including USDC.

Furthermore, CfA referenced a report by ChainArgos, a crypto analysis platform, which revealed that addresses redeeming large amounts of USDC for USD have been receiving funds from wallets linked to Hamas and Hezbollah terrorist groups.

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CfA Criticizes Oversight Agencies

In its letter to Warren and Brown, CfA criticized regulatory agencies for allowing Circle to operate without proper oversight. The organization questioned why Circle, responsible for over $25 billion in cryptocurrency, has not been subject to the same regulatory scrutiny as other crypto firms and their partners such as BitGo, Coinbase, Goldman Sachs, BNY, and BlackRock.

CfA emphasized that Circle’s lack of accountability has facilitated its involvement with TRON, a network that may not meet US compliance standards.

The letter urged the senators to address these concerns and investigate the potential links between Circle and terrorist financing. With Circle’s high-profile financial backers such as Goldman Sachs, BNY, and BlackRock, CfA believes that these suspicious activities deserve serious attention.

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By Team