The US government has announced a formal investigation into the cryptocurrency company Tether, developer of the USDT stablecoin. The Wall Street Journal reports that authorities are looking into possible violations of anti-money laundering and sanctions rules by the company. However, the company’s CEO said this study was not true.
JUST IN: 🇺🇸 US government begins investigation $USDT Cryptocurrency company Tether.
— Watcher.Guru (@WatcherGuru) October 25, 2024
The WSJ reported that the criminal investigation will be conducted by prosecutors from the U.S. Attorney’s Office in Manhattan. Authorities are investigating whether stablecoins were used by third parties to fund illegal activities. These crimes are as extreme as drug trafficking, terrorism, and hacking.
For years, Tether and its cryptocurrency have been at the center of concern for federal regulators and law enforcement. With cryptocurrencies, there is always the fear that criminals may use digital assets to commit crimes in order to evade sanctions and authorities. Tether’s USDT is pegged to the US dollar, making it an ideal alternative in places where the use of US currency is prohibited by regulators. Therefore, a US investigation seems plausible.
Tether CEO says US government investigation is nonsense
Source – CriptoNoticias
Tether CEO Paolo Ardonio said in a statement that the company had no indication of this investigation. “As we told WSJ, there is no indication that Tether is under investigation,” the CEO said on X. ” WSJ is regurgitating old noise. Full stop. ”
Additionally, the company itself said there was no indication that it was facing a broader investigation. “It is outrageous to suggest that Tether is in any way involved in supporting criminals or evading sanctions,” Tether said in a statement. “As we have demonstrated publicly many times, we actively cooperate with U.S. and international law enforcement agencies to combat illegal activity.”
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The Tether stablecoin is one of the most traded cryptocurrencies in the world, with approximately $190 billion USDT moving daily. It is also an important means of financing some of America’s biggest national security concerns. These include North Korea’s nuclear weapons program, Mexican drug cartels, Russian arms companies, and Hamas.
