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USDC Operator Circle Received Subpoena from SEC, "Cooperates on Investigation"

Tue, 10/05/2021 - 11:14
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Vladislav Sopov
Circle Internet Financial, operator of second-largest stablecoin USDC, revealed it received a subpoena from the SEC in July
USDC Operator Circle Received Subpoena from SEC, "Cooperates on Investigation"
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Yesterday, on Oct. 4, 2021, Circle Internet Financial filed Form S-4 with the U.S. Securities and Exchange Commission. This filing was made within the framework of Circle's planned merger.

Circle subpoenaed by SEC in July 2021

According to the text of the filing published by the U.S. watchdog SEC, Circle disclosed that it was subpoenaed three months ago. The subpoena was issued by the SEC's Enforcement Division.

As reported by Bloomberg Crypto, Circle disclosed this fact, preparing to go public through a merger with special purpose acquisition company Concord Acquisition Corp.

Circle admitted that the SEC requested information about its products and holdings operations:

In addition, in July 2021, we received an investigative subpoena from the SEC Enforcement Division requesting documents and information regarding certain of our holdings, customer programs, and operations.

Then, Circle representatives stressed that the team is "fully cooperating" with the SEC's investigation.

USDC supply adds 800% YTD

As covered by U.Today previously, on Aug. 9, 2021, Circle decided to pay a civil monetary penalty of $10.4 million, disgorgement and prejudgment interest to settle the case against its wholly-owned subsidiary, Poloniex.

SEC Reaches $10 Million Settlement with Poloniex

Pursuant to Section 5 of the Exchange Act, Poloniex was accused of offering unregistered securities as digital assets to U.S. citizens.

Circle's main product, U.S.-pegged stablecoin USD Coin (USDC), garnered a lot of attention this year. It is the fastest-growing major stablecoin as its market cap spiked from $3.9 billion to over $32 billion in 2021.

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About the author

Blockchain Analyst & Writer with scientific background. 6+ years in IT-analytics, 3+ years in blockchain.

Worked in independent analysis as well as in start-ups (, Monoreto, Attic Lab etc.)