The Wall Street Journal US Federal Agencies Initiate Investigation on Tether
According to The Wall Street Journal, the US federal government is investigating whether Tether, the largest stablecoin issuer in the world, has violated sanctions and anti-money laundering rules.
WSJ: US Government Investigating Tether
According to The Wall Street Journal, the US federal government is investigating whether Tether, the largest stablecoin issuer in the world, has violated sanctions and anti-money laundering rules.
This criminal investigation is being led by prosecutors from the Manhattan US Attorney’s Office and aims to investigate whether cryptocurrencies have been used by third parties to fund illegal activities such as drug trafficking, terrorism, hacking, or to launder the proceeds from these activities.
The Treasury Department has been weighing whether to impose sanctions on Tether, as its stablecoin, USDT, has been used by individuals and groups subject to US sanctions, including terrorist organization Hamas and Russian bad actors. The report states that if the Treasury Department decides to impose sanctions on Tether, the focus will be on preventing Americans from conducting business with Tether.
CEO Paolo Ardoino’s Rebuttal
Tether CEO Paolo Ardoino responded on Twitter:
There is no evidence to suggest that Tether is under investigation. The WSJ is just repeating old claims.
He also added that Tether regularly engages with law enforcement officials to prevent the misuse of USDT by rogue nations, terrorists, and criminals. If Tether were truly under investigation as claimed in the article, the company would be aware of it, so the report is definitely incorrect.
Tether’s Battle with the Media
Stablecoin leader Tether has always been engaged in battles with major media outlets. Bloomberg raised many questions about Tether’s reserve assets in October 2021, publishing an article titled “Has Anyone Seen Tether’s Billions?” Bloomberg and CoinDesk have also requested the New York Attorney General’s Office to publicly disclose relevant information about Tether, revealing contradictions between the documents and Tether’s public statements. The Wall Street Journal has also published negative reports on Tether.
(Tether’s Battle with the Media! Documents Reveal Tether’s Reserve Assets Involved Chinese Company Securities)
Even Forbes has published a dedicated article about Tether in August 2023, questioning its seemingly continuous growth but declining profits, and calling its reports inconsistent and maintaining its usual tactic of confusing the audience.
(Chain News Analyzes Forbes’ Report on Tether: Tether’s Declining Profits Confuse with Different Indicators)
However, every time Tether faces media attacks, CEO Paolo Ardoino always comes forward to rebut and dismiss them as FUD. The market capitalization of USDT recently surpassed $120 billion, reaching a new all-time high and accounting for 68% of the overall stablecoin market value.
