The non-profit ethics group Campaign for Accountability (CfA) sent a letter to the US Senate about the alleged gross violation of FATF provisions by Circle and Tron companies.
CfA appealed to the US Senate with a warning about the identification of facts of complicity of Circle and the Tron Foundation in money laundering and terrorist financing. Separately, CfA emphasized to senators that large Wall Street investors such as Goldman Sachs, Bank of New York Mellon and BlackRock have discredited ties to Circle and Tron.
CfA director Michelle Kuppersmith calls Wall Street's collaboration with Circle and Tron «surprising» especially in light of the lack of transparency and alleged gross violations of international anti-money laundering and counter-terrorist financing standards.
“Mutual integration, as well as Circle and Tron’s proprietary technologies, exacerbate the use of digital assets in money laundering. The flow of money into suspected terrorism accounts should be a major concern for crypto investors, bankers and asset managers on Wall Street. The activities of crypto firms, their business connections and possible complicity in the financing of terrorism require the US Congress to give a legal assessment and hold the guilty parties accountable,” says Kuppersmith..
In its statement to senators, CfA cites a report from forensics firm Elliptic, which states that USDC's listing on multiple offshore blockchains, as well as Circle's use of a «cross-chain protocol,» have made it much easier for potential criminals to move digital assets and launder money..
Earlier, Israeli law enforcement agencies, amid the escalation of the military conflict, announced the blocking of Hamas crypto exchange accounts on Binance and the confiscation of assets.