The WSJ article reports that Tether may be under investigation for sanctions violations and money laundering concerns.
Tether’s CEO has denied any indication that the company is under investigation by US authorities. His comments followed a report in the Wall Street Journal suggesting that federal investigators were looking into possible violations of sanctions and anti-money laundering rules.
The U.S. Attorney’s Office in Manhattan is investigating whether Tether was involved directly or through third parties in activities such as drug trafficking, terrorism, and financing of hacking, according to the report. Concerns have been raised that virtual currencies are facilitating illegal money laundering.
Tether, the world’s largest stablecoin, aims to maintain stable value over the long term. CEO Paolo Ardoino dismissed the claims about X, insisting there was no investigation underway. The Treasury Department is reportedly considering sanctions, but there has been no official comment from the U.S. Department of Justice or other relevant agencies.
In response, Tether criticized the Wall Street Journal for failing to cooperate with law enforcement agencies to combat illegal activities related to cryptocurrencies. Officials with the Treasury Department’s Financial Crimes Enforcement Network did not immediately respond to media requests.
