Ethical Regulator Rats Circuit Links to Tron in Letter to Sens. Warren, Brown
The non-profit ethics group Campaign for Accountability (CfA) sent a letter to US Senators Elizabeth Warren and Sherrod Brown on November 9 asking them to provide information on the alleged use of cryptocurrency in money laundering. The letter specifically discussed the Tron blockchain and the stablecoin community.
In a letter signed by CFA executive Michelle Coopersmith, the USD Coin (USDC) issuance circle is said to have extensive ties to both the Justin San Tron Foundation (TRX) and major Wall Street investors such as Goldman Sachs, Bank of New York Mellon, and others. Blackrock
Coopersmith called the relationship with Wall Street “weird” because of the lack of oversight and Tron's ties to terrorist financing.
The letter mentions that Tron is under investigation by the US Securities and Exchange Commission for unregistered securities sales and has ties to Palestinian Islamic Jihad and possibly funding Hamas and Hezbollah. Meanwhile, he said, $400 million USDC is in the Tron ecosystem. The letter says:
“Recently published studies and reports of law enforcement operations point to a prominent US-based cryptocurrency company backed by major Wall Street investment houses. [Circle] It may be directly or indirectly affected by its integration with Asia-based trading platforms and cryptocurrencies.
That network, Tron, “has been named in several international law enforcement actions involving multi-billion dollar transactions by organized crime groups and sanctioned entities.”
Those concerns go beyond what the senators, along with more than 100 lawmakers, addressed in the letter they sent to the national security adviser and the Treasury Department's undersecretary for terrorism and financial intelligence, Coopersmith added. The aforementioned letter was sent to a bipartisan group of lawmakers on October 17. Crypto advocacy groups have discussed many of the claims made in that letter.
Additionally, the letter questions Circle's apparent lack of regulation and its “unregulated cross-chain protocol” operation.
“While Goldman, BNI and BlackRock are registered and regulated by various federal and state banking and securities authorities, Club has failed or failed to subject itself to major prudential regulations since its inception a decade ago. In May 2022, the SEC filed the letter,” the letter states.
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In the year On November 10, CfA commented on an October proposal by the Treasury's Financial Crimes Enforcement Network to designate money laundering centers.
“Until the scope of the regulation is expanded to include the tactics adopted by new criminal groups using virtual currencies, it is useful, but may soon become obsolete,” the organization said.
Despite being a United States company, Club has failed or failed to submit itself to primary or prudence laws since its inception ten years ago, a serious accountability campaign reported to the SEC in May 2022. https://t.co/4s8w98JL8S
— Campaign for Accountability (@Accountable_Org) November 9, 2023
In the opinion, CfA discusses cross-chain protocols and Sun's SunSwap decentralized exchange protocol, which blockchain forensics firm Elliptic says is “a medium through which terrorist organizations can obtain the necessary information.” [digital currency]He said.
“Sun is reported to have direct ties to the Chinese Communist Party,” the organization added, citing reports that Sun participated in a research project at China's Central Party School.
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