SEC initiates investigation against Circle
Securities and Exchange Commission (SEC) initiated an investigation against USDC stablecoin backer Circle Financial. This is stated in the documents, published on October 4.
SEC initiates investigation against Circlehttps://t.co/rr9L7R1ywR— FINTWIT (@fintwitnow) October 5, 2021
Circle received a subpoena in July 2021 demanding "documents and information regarding certain assets, client programs and transactions," according to a new Form S-4.
Circle emphasized that it was "fully cooperating" with the SEC's investigation. The documents did not specify its scope or details.
Circle previously closed a $440 million funding round with investments from FTX, Digital Currency Group, Fidelity Management, Valor Capital Group and other venture capital firms.
1/4 ANNOUNCEMENT: Circle has raised $440M in a strategic financing to accelerate our growth and market expansion. This comes on the heels of extraordinary growth in USDC adoption, and acceleration across our business. https://t.co/RbWg4O90B1— Jeremy Allaire (@jerallaire) May 28, 2021
In July it became known about Circle's plans to enter the stock market.
1/7 Today, we announced that we have signed definitive agreements for a transaction that will result in Circle becoming a publicly listed company on the NYSE trading under the ticker CRCL. https://t.co/WIK9CUKNIR— Jeremy Allaire (@jerallaire) July 8, 2021
In August, Circle CEO Jeremy Allaire said Circle would become a "national full-reserve digital currency commercial bank". Its operations will comply with the Federal Reserve, the U.S. Treasury, the OCC and the FDIC.