The CEO of Tether (USDT-USD) was quoted in a recent Wall Street Journal report as saying that U.S. authorities are investigating whether the cryptocurrency company violates sanctions and anti-money laundering laws. He said there was no sign of an investigation, despite reports that there was a possibility. According to WSJ, the Manhattan Federal Prosecutor’s Office is investigating whether Tether is being used by a third party to support illegal activities such as drug trafficking and terrorism.
As the world’s largest stablecoin, Tether is meant to maintain stable value, but its popularity has come under scrutiny. Although CEO Paolo Ardoino has assured X users that Tether is not the subject of the investigation, the Treasury Department is reportedly considering sanctions due to the widespread use of Tether by sanctioned companies. . This is nothing new, as Tether has previously faced questions about possible bank fraud involving its backers.
Interestingly, Tether responded to the report, accusing the Journal of downplaying its extensive cooperation with law enforcement to prevent misuse of the currency.
There are no plans for an IPO.
In another development, Tether’s CEO recently said that Tether has no plans to go public anytime soon. He explained to Fox journalist Eleanor Terret that an IPO would slow down Tether’s operations and impact Tether’s mission to disrupt the industry.
Ardoino pointed to Tether’s strong financial position. Specifically, it has made billions of dollars in profits over the past two years, including $5.2 billion in the first half of 2024 alone. With $12 billion in profits and deep pockets, Tether doesn’t need the additional cash that an IPO typically brings, which is the main reason companies go public.
