Cryptocurrency company Tether is being investigated by Wall Street, according to a report published on Friday, October 25, that federal agencies are investigating the company for possible violations of sanctions and anti-money laundering (AML) rules. denounced the Journal’s (WSJ) report.
The WSJ report cited anonymous sources.
“These stories are based on pure ranking speculation, even though Tether has confirmed that it has no knowledge of any such investigation into the company,” Tether said in a statement on its website. said. “The article also inadvertently glosses over Tether’s well-documented and extensive dealings with law enforcement to crack down on bad actors who seek to exploit Tether and other cryptocurrencies. .”
According to a report in the WSJ, prosecutors from the Manhattan U.S. Attorney’s Office are investigating whether Tether’s virtual currency is being used by third parties to fund illegal activities or launder proceeds from such activities. They say they are investigating.
Additionally, the Treasury Department has reported that it is considering sanctions against the company because its virtual currency is being used by individuals and entities sanctioned by the United States, and the Department of Justice launched an investigation into Tether several years ago. He said it had started.
Neither the Treasury Department nor the Justice Department immediately responded to PYMNTS requests for comment sent outside normal business hours.
The WSJ article also claims that the Tether cryptocurrency is used by North Korea’s nuclear weapons program, Mexican drug cartels, Russian arms companies, Middle Eastern terrorist organizations, and Chinese chemical manufacturers used to make fentanyl. This is what the magazine had previously reported.
Tether CEO Paolo Ardoino wrote in a Friday post on social platform X: WSJ is regurgitating old noise. Full stop. ”
As we told WSJ, there is no indication that Tether is under investigation. WSJ is regurgitating old noise. Full stop.
— Paolo Ardoino ?? (@Paolo Ardoino) October 25, 2024
In a separate Friday post on I wrote that I would know.
“On that basis, we can confirm that the claims in the article are demonstrably false,” Ardoino wrote.
At Tether, we regularly work directly 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 the following claims…
— Paolo Ardoino ?? (@Paolo Ardoino) October 25, 2024
Tether (USDT) is the largest stablecoin by market capitalization, but it is primarily used as a trading pair on exchanges for liquidity and stability, and its regulatory status has led to companies not using Tether fully across their operations. PYMNTS reported on Monday (October 29) that there may be hesitation to adopt it. twenty one).
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