Since the Israel-Palestine war, several crypto companies have come under fire from governments that are wary of how terrorists make good use of cryptocurrencies and blockchain. There appears to be a particular focus on stablecoin issuers such as Circle and Tether, but Circle disagrees with the allegations. USDC and Circle are said to have no ties to terrorists or controversial crypto tycoon Justin Sun.
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Circle does not participate in terrorism
Several companies have taken action, including USDT issuer Tether and crypto exchange Binance. But things remained fairly quiet around Circle, although terrorist organizations were able to use Circle’s USD Coin (USDC) for funding.
In early November, the US ethics watchdog Campaign for Accountability raised its concerns with the US Senate Banking Committee. Trading platforms and blockchain would be used to finance terrorism. In this story, Tether, Circle and the blockchain Tron (TRX) were seen as the main culprits.
Circle breaks its silence with a press release claiming it does not allow terrorist financing at all – either directly or indirectly. In fact, to prevent illegal activities, it works closely with law enforcement agencies in the United States, Israel and other states. Working with those authorities, it helped seize funds from so-called “pig slaughter scams” last month.
Tron creator Justin Sun is also mentioned several times in the message. The Tron blockchain is said to have quickly gained popularity among terrorists. Critics claim that Circle is allowing terrorists to use USDC to transact on Tron, but Circle denies this. The American company would not provide services to this CEO or to companies under Sun’s control, such as Huobi and Poloniex.
US government is not happy with crypto
The US government has been extremely strict on crypto companies for several years. Only a few have managed to escape the heavy hand of the Securities and Exchange Commission (SEC), among others.
When it became clear that terrorist movements were using cryptocurrencies, that was reason enough for the country’s politicians to once again present draconian draft laws. The letter is addressed to the same senators who have been very anti-cryptocurrencies in the past. Shortly after these measures were proposed to be imposed, it was revealed that the role of cryptocurrencies in financing Hamas had been greatly exaggerated.
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