Circle’s operations — the company behind USDC stablecoin, is currently under investigation with the US Securities and Exchange Commission (SEC).
In a regulatory filing that Circle revealed, the SEC declared the scrutiny in July 2021. To specify, the regulator urged Circle to present legal documents of its customers’ programs, holdings, and operations.
Moreover, Circle confirmed the matter, noting that it would cooperate with the SEC amid the ongoing audit.
To clarify, Circle adds that it received an investigative warrant from the SEC, requesting documents and information regarding some of its holdings, customer programs, and operations. What's more, the team said they are cooperating fully with their investigation.
Back in August, Circle also published similar reports when the SEC began an investigation of its subsidiary Poloniex. During that time, Circle agreed to pay a fine of $10 million to SEC due to the charges that Poloniex operated as an unregistered crypto exchange.
Expanding further, Circle revealed that over 61% of USDC stocks were held in cash and cash equivalents while the remaining is in commercial paper accounts abonds, and treasuries.
Additionally, Circle is considered to go public under an acquisition vehicle. Besides, the company expects to achieve this milestone with Concord Acquisition Corp's $4.5 billion value.