As reported by WSJ, the U.S. federal government is increasing its oversight of the cryptocurrency company Tether, investigating potential violations of sanctions and anti-money laundering laws.
The criminal investigation, led by the Manhattan U.S. Attorney’s Office, aims to determine whether Tether was used by third parties to fund illegal activities such as drug trafficking, terrorism, and cybercrime, or to launder related proceeds. are.
Tether has emerged as an important tool in sanctioned regions and has begun to be monitored by governments. The Treasury Department is considering a moratorium on Tether that could prevent Americans from doing business with the company because it is used by sanctioned groups such as Hamas and Russian arms dealers.
The Justice Department began investigating Tether several years ago, initially focusing on whether some of its backers committed bank fraud by using forged documents to gain access to the global banking system.
Tether has denied any criminal involvement and recently called the allegations “outrageous” and emphasized its cooperation with U.S. and international law enforcement agencies. The company pointed to initiatives such as freezing wallets and using analytics partners to monitor transactions, and argued that blockchain transparency helps deter crime and helps authorities track transfers.
Tether’s regulatory issues come amid increased scrutiny in the cryptocurrency space. Recently, Binance founder Qiao Changpeng was sentenced to four months in prison and a $4.3 billion fine for anti-money laundering violations.
Tether also paid $61 million in an earlier settlement with New York regulators over asset misstatements. Potential criminal charges affect Cantor Fitzgerald, which controls most of Tether’s $80 billion in reserves under CEO Howard Lutnick, an ally of President Trump. There is a possibility.
The Trump campaign did not comment on the federal investigation, but praised Lutnick as a “distinguished business leader and philanthropist” and noted his volunteer role as co-chair of the Trump Vance transition team. did.
Also read: Tether invests $100 million in agriculture company
