Wednesday, February 21, 2024

ShapeShift responds to Senator. Warren’s comments for “setting the record straight”

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Unguarded crypto platform ShapeShift has refuted US Sen. Elizabeth Warren’s allegations of “illicit financing,” stating that it used the platform as a scapegoat to “pay” its latest cryptocurrency bill, according to a recent statement.

ShapeShift mentioned it in a tweet in February. 19 that Warren made “mistakes” in her “analysis” of the platform, at a recent Senate Banking Committee hearing titled “Crashing Crypto: Why We Need Safeguards for the Digital Assets Financial System,” on Feb. 3. 14.

in follow tweetShapeShift denied Warren’s comments regarding its involvement in “illicit financing” saying it “never deals with user funds” and has no ability to “facilitate this”.

This comes after Warren suggested at a Senate hearing that ShapeShift has ulterior motives to restructure itself as a DeFi platform in July 2021.

Warren suggested that the restructuring was to encourage people to “launder” money on the platform.

Shapeshift also clarified that it is “not an exchange,” explaining that it is an open source crypto dashboard that “connects users” with different protocols and platforms.

She added that she cares about “the same things” as Warren, citing “user safety” and “access innovation” as a common focus.

ShapeShift encouraged Warren and others to “constructively engage” on the topic of financial freedom and innovation with its community, sharing a link to its discussion forum.

This comes just a day after ShapeShift CEO Eric Voorhees posted on his personal Twitter on February 3. 18, Mentionsed He looks forward to Warren “making a proposal” for the Shapeshift DAO management process, in response to her criticisms of the platform.

Related: US Senator Elizabeth Warren says cryptocurrencies will destroy the economy – society is responding

Warren has been a vocal skeptic of digital currencies lately, after he made comments in an interview on Jan. 4. 25, suggesting that the US Securities and Exchange Commission (SEC) should “double up” its crypto enforcement efforts, as the cryptocurrency industry is afraid of what comes next.

It alleged that the former SEC administration “essentially green-lighted” the opening of a cryptocurrency market “full of junk, unregistered securities, rugby-drafts, Ponzi schemes, pumps and dumps, money laundering and sanction evasion.”

Cointelegraph has reached out to ShapeShift for comment but did not receive a response at the time of publication.