Circle Faces Fresh Accusations By CFA, CCTP Used For Illicit Finance Through Tron
Portfolio Pulse from Khyathi Dalal
Circle, the issuer of USDC, is facing renewed accusations from the Campaign for Accountability (CFA) regarding its Cross Chain Transfer Protocol (CCTP) being used for illicit finance through the Tron blockchain. CFA has raised concerns to Senators Elizabeth Warren and Sherrod Brown, citing law enforcement actions involving Tron. Circle's Dante Disparte responded in November, denying the claims and stating that Circle monitors blockchain activity and has cut ties with Justin Sun and related entities. Despite this, CFA criticizes Circle for lack of transparency and regulatory approval for offering USDC on Tron and other offshore blockchains.
December 16, 2023 | 5:47 pm
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Circle's USDC is under scrutiny for alleged illicit finance activities through Tron, with CFA raising concerns about regulatory approval and transparency. Circle denies the claims and emphasizes its monitoring efforts.
The renewed accusations by CFA against Circle regarding USDC's use on the Tron network could negatively impact investor sentiment towards USDC in the short term. The focus on regulatory compliance and transparency issues may lead to increased scrutiny and potential reputational damage, which could affect the stability and trust in USDC.
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IMPORTANCE 80
RELEVANCE 90