Cryptocurrency prices fell late Friday following Israel’s attack on Iran and a Wall Street Journal report that the U.S. government is investigating Tether.
Bitcoin fell late Friday after Israel launched airstrikes against multiple Iranian military targets.
The Israel Defense Forces released a statement and video regarding The regime and its proxies in the region have relentlessly attacked the State of Israel since October 7 on seven fronts, including direct attacks from mainland Iran, as well as other sovereign states around the world. We have the right and obligation to respond. Our defensive and offensive forces will be fully mobilized. We will do whatever it takes to protect the State of Israel and the Israeli people.”
sauce: ×
The Wall Street Journal launches FUD attack against Tether
WSJ announced today that Tether is being investigated for possible violations of sanctions and anti-money laundering regulations. According to the WSJ, sources say the U.S. Attorney’s Office in Manhattan is investigating whether Tether is being used to finance or launder money related to criminal activities such as terrorism, drug trafficking and hacking.
According to the WSJ, the Treasury Department is also considering sanctions for the use of Tether among entities sanctioned by the United States, including groups like Hamas and Russian arms dealers. If approved, Americans would generally be restricted from interacting with Tether.
Bitcoin plummeted to $66,200 on this news, but then recovered and fell again to $66,183 when news broke that Israel had launched an attack on Iran.
Source: Brave New Coin Bitcoin Liquid Index
Was the Wall Street Journal wrong?
I’m not sure. But Tether CEO Paolo Ardoino thinks so. He denied the report, telling X: “At Tether, we regularly and directly work with law enforcement authorities to prevent the misuse of USDt by rogue states, terrorists, and criminals.” We can tell if we are being investigated, as the article falsely claims. Based on that, we can confirm that the claims in the article are demonstrably false. He also said, “As I told WSJ, there is no indication that Tether is under investigation. WSJ is regurgitating old noise. Full stop.”
sauce: ×
Tether, with its value pegged to the dollar, is the most heavily traded cryptocurrency, with daily trading volume reaching up to $190 billion. Its stability makes it useful in areas where the use of the dollar is restricted, but federal officials are increasingly concerned about its links to issues such as North Korea’s nuclear program and Mexican drug cartels. Tether refutes these accusations, stating that “it is outrageous to suggest that Tether is in any way involved in supporting criminals or evading sanctions,” and that Tether is committed to combating illegal activity. It claimed to be cooperating with law enforcement.
A few years ago, the Justice Department began scrutinizing Tether’s backers for bank fraud. Since then, Tether has introduced stricter controls to monitor abuse. The company claims its transparent ledger system deters criminal use and allows authorities to track money transfers more efficiently. Tether recently strengthened its compliance measures, partnered with analytics firms Chainalysis and TRM Labs to increase transaction oversight, and hired a new government affairs director from PayPal to strengthen its regulatory efforts.
