Ethics watchdog rats out Circle for links to Tron in letter to Sens. Warren, Brown
Nonprofit ethics group Campaign for Accountability (CfA) sent a letter to U.S. Senators Elizabeth Warren and Sherrod Brown on Nov. 9 to present them with information on the alleged use of cryptocurrency in money laundering. The letter discussed the Tron blockchain and stablecoin issuer Circle in particular.
In the letter signed by CfA executive director Michelle Kuppersmith, it is alleged that USD Coin (USDC) issuer Circle has extensive ties to both Justin Sun’s Tron Foundation (TRX) and major Wall Street investors such as Goldman Sachs, Bank of New York Mellon and Blackrock.
Kuppersmith called Circle’s connections to Wall Street “surprising" in light of its supposed lack of regulation and Tron's alleged connections with terrorism financing.
Tron is under investigation by the U.S. Securities and Exchange Commission for unregistered securities sales and has been linked to the alleged financing of the Palestinian Islamic Jihad and possibly Hamas and Hezbollah, the letter outlined. Meanwhile, it claimed that $400 million worth of USDC is in the Tron ecosystem. The letter said:
That network, Tron, “has been named in multiple international law enforcement actions involving billions of dollars in transactions by alleged organized crime groups and sanctioned entities.”
These concerns go beyond the issues raised in the letter the senators, along with over 100 other legislators, sent to the National Security Advisor and Treasury Undersecretary for Terrorism and Financial Intelligence, Kuppersmith added.The letter referred to was sent by the bipartisan group of lawmakers on Oct. 17. Crypto advocacy groups took issue with several of the claims made in that letter.
Furthermore, the letter questions Circle's apparent lack of regulation,
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