According to a recent statement, unmanaged password platform ShapeShift refuted US congressman Elizabeth Warren's claim of "illegal financing", implying that she used the platform as a scapegoat to "promote" her latest password decree.

ShapeShift said in a tweet on February 19th that Warren had committed an "incorrect" analysis of his platform at a hearing of the House of Lords Federation of Financial institutions on Feb. 14. The title of the hearing is "Crypto Crash: why Digital money must be ensured by the Financial system".

In a subsequent tweet, ShapeShift denied Warren's claims that he was involved in "illegal financing", saying he had "never dealt with client assets" and was unable to "therefore help".

Earlier, Warren said at a House of Lords hearing that ShapeShift had ulterior motives in reorganizing itself into the Defi platform in July 2021.

Warren indicated that the purpose of the reorganization is to encourage people to "launder money" on this platform.

ShapeShift also responded that it is "not a trading hub" and that it is an open source system's password in-car dashboard that "transmits" users to different protocols and platforms.

It added that it cared about the same "things" as Warren, and stressed that "user safety" and "getting independent innovation" were their common priorities.

ShapeShift encourages Warren and others to "participate globally" in the discussion of finance and innovation, rather than to share links to its discussion community forums.

Just a day earlier, ShapeShiftCEO Eric Woshis said on his own Twitter on Feb. 18 that he expected Warren to submit a proposal to the entire ShapeShift DAO renovation process in response to Warren's criticism of the platform.

Recently, Warren has been an outspoken password skeptic, suggesting that the Securities and Exchange Commission (SEC) needs to continue its efforts at the password inspection level, as the password industry is afraid of what happens next.

She claimed that successive sessions of the Securities and Exchange Commission had "mostly turned on the signal lights" and created an encrypted currency market, "filled with junk tokens, unregistered securities, blankets, Ponzi schemes, pumping water and dumping, money laundering and evading the ban."

Cointelegraph contacted ShapeShift for comment but did not receive a text message at the time of the release.