CfA’s Bold Letter to Senators
On November 9, the Campaign for Accountability (CfA) fired off a rather incendiary letter to U.S. Senators Elizabeth Warren and Sherrod Brown. The spotlight? Cryptocurrency’s pretty shady side, particularly the alleged money laundering tied to the Tron blockchain and USD Coin (USDC) issuer Circle.
Circle’s Wall Street Connections: A Cause for Alarm?
In a letter signed by CfA executive director Michelle Kuppersmith, it was noted that Circle has extensive ties to major Wall Street players. We’re talking about names like Goldman Sachs and BlackRock, which raises eyebrows considering that Tron, the blockchain in question, has been fingered in connections to terrorism financing.
What’s Up with Tron?
Tron is currently in the hot seat, being investigated by the Securities and Exchange Commission (SEC) for unregistered securities sales. Allegations have emerged linking Tron to entities like the Palestinian Islamic Jihad, Hamas, and Hezbollah. Kuppersmith highlighted that a staggering >$400 million worth of USDC is sitting pretty in the Tron ecosystem.
A Call for More Oversight
The letter took it a step further by questioning the lack of regulation surrounding Circle’s operations. While Goldman and pals are regulated up to their eyeballs, Circle has been dodging proper regulation since it got off the ground. This has been a red flag for the CfA, prompting them to notify the SEC back in 2022.
Crypto Mixers: The New Wild West?
In what seems like a mounting response to concerns about cryptocurrency’s role in crime, on November 10, the CfA chimed in on the proposal to designate crypto mixers as money-laundering tools. They argue it’s a great idea, but not enough unless regulations evolve to tackle the latest sneaky tactics used by criminals in the virtual currency game.
With additional discussions around the decentralized exchange protocol SunSwap linked to Justin Sun, and allegations about ties to the Communist Party of China, this is a conversation we expect to see heating up further. The world may finally start taking cryptocurrency’s underbelly seriously, one scandal at a time!
