Tether CEO Paolo Ardoino denied reports that lawmakers are investigating the major cryptocurrency company for possible violations of anti-money laundering and sanctions laws.
According to the Wall Street Journal, a reported investigation led by Manhattan prosecutors is investigating whether Tether’s cryptocurrency (USDT) is funding illegal activities such as drug trafficking or terrorism, or whether funds from these activities are being used. The focus is on whether it was used for cleaning.
At the same time, WSJ reported that the US Treasury Department is considering sanctions against Tether.
Sanctions could prevent Americans from doing business with the company. The main reason for this is that the company’s virtual currency is said to be used by sanctioned individuals and entities, including Russian arms dealers and the terrorist organization Hamas.
Tether CEO Paolo Ardoino vehemently denied these reports, posting on X: WSJ is regurgitating old noise. Full stop. ”
Past criticism of Tether
In September, Consumers Research criticized Tether, the issuer of the USDT stablecoin, for lacking transparency and not conducting a full audit of its dollar reserves despite promises dating back to 2017. A report was published.
The report compared Tether’s operations to that of the bankrupt FTX and raised suspicions that Tether is being used to evade international sanctions in countries such as Venezuela and Russia, among others.
Tether’s cryptocurrency, known as a stablecoin, is pegged to the value of the U.S. dollar, unlike more volatile cryptocurrencies like Bitcoin. This stability has made Tether popular even in regions where access to the US dollar is restricted or prohibited.
Every day, $190 billion worth of Tether is traded around the world, making it the world’s most widely used cryptocurrency.
Tether denies involvement in any illegal activity, but has taken steps to prevent misuse of its currency, including partnering with companies that track transactions.
