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​Circle is under investigation by the U.S. Securities and Exchange Commission again

05.10.2021 - 08:50 Editorial GetBlock Magazine Editorial GetBlock Magazine

The company said, “we are cooperating fully” with the investigation, but declined to provide details.

What's new? The issuer of stablecoin USDC, company Circle Financial, said that its work is under investigation by the U.S. Securities and Exchange Commission (SEC). In July 2021, Circle received a subpoena for an investigation from the SEC's Enforcement Division requesting documents and information about the company's assets, customer programs and operations.

Materials on Circle from the SEC website

“We are cooperating fully with their investigation,” Circle’s statement said.

The statement does not specify what the focus of the SEC's ongoing investigation is. Circle Financial does not give additional comments to the press.

What are the reasons for the SEC's claims? The subpoena came a month after Circle began attracting USDC corporate holders to its first high-yield product, Circle Yield. It was offered to American corporations as a “well-regulated” way to receive cryptocurrencies. In the product description, Circle placed special emphasis on Bermuda licenses.

This is not the first conflict of the company with the SEC. In August, Circle announced that it had agreed to pay the Commission more than $10 million in fines for violations in the work of its subsidiary crypto exchange Poloniex.