Circle CEO Jeremy Allaire clarified their relationship with FTX and Alameda Research on November 9, 2022.
1/ Lots of FUD accruing out there, so another thread to help dispel the noise.
— Jeremy Allaire (@jerallaire) November 9, 2022
He made this announcement in a thread in the early hours of the day to debunk the ongoing rumor that Circle, a stablecoin payment network, is affiliated with Alameda Research and FTX Exchange.
The reason for making this kind of announcement is not a mystery because both platforms are currently affected by a lawsuit threatening bankruptcy and shutdown.
Alameda has been charged with financial crimes, and an affiliated platform, FTX, has been implicated, putting both networks at risk of failure.
To save its skin, Circle, a long-time customer of both platforms, has announced that it is not affiliated with them.
Jeremy, the CEO and co-founder, stated in his tweet that even though they’ve been rendering payment services for FTX for the past 18 months and Alameda for many years, there was no loan or collateral activity between them.
He further stated that Circle has never traded FT tokens or held a position on the network. In addition, their relationship has been strictly interchanging of money and services.
All stablecoin transfers between them have always gone through an automated machine that is in charge of issuing and redeeming USDC.
Coinbase CEO Brian Armstrong had earlier expressed his sympathies to all parties involved in the current FTX saga on his Twitter page.
He then clarified that Coinbase is not linked to either Alameda or FTX in the form of investment, collateral, or loans.
He stated that their platform aims to reinforce in the minds of the general public what makes them unique and how everything that happens is related to risky business practices.
Armstrong went on to say that Coinbase is always cautious, never engaging in business practices that could harm the platform.