U.S. authorities are targeting Tether as a money launderer, according to sources cited by the Wall Street Journal in a report written by Angus Berwick, Vivian Salama and Ben Foldi and published today. The company said it is investigating the matter as potentially violating anti-ring laws and sanctions.
The investigation is apparently being led by the Manhattan federal prosecutor’s office, the Journal said, citing sources familiar with the matter. They are investigating whether they laundered funds resulting from illegal activities. The Treasury Department is also said to be considering sanctions against Tether due to its growing popularity among entities and individuals under U.S. sanctions. Such sanctions would prevent Americans from trading with Tether.
Tether’s stablecoin USDT, which maintains a 1:1 peg to the U.S. dollar, has become a central concern for U.S. regulators and enforcement agencies, the WSJ reported. Unlike more volatile digital currencies, Tether’s stability in value makes it an attractive alternative to the dollar in areas where the U.S. currency is restricted. With daily trading volume reaching approximately $190 billion, Tether remains the world’s most traded cryptocurrency and plays a key role in several national security challenges, according to previous reporting by the magazine. Fulfilling.
The WSJ article also notes that the U.S. Department of Justice investigation into Tether has been ongoing for several years, initially focusing on allegations that some Tether backers may have falsified documents to gain access to the global banking system. He also mentioned that he was guessing. Tether said there was no indication that a broader investigation would take place and dismissed accusations of involvement in criminal activity as unfounded.
As reported by WSJ, Tether said in a statement:
“It is outrageous to suggest that Tether is in any way involved in aiding criminals or evading sanctions. As we have demonstrated publicly many times, we are committed to supporting the United States and We are actively cooperating with international law enforcement agencies.”
Tether has also stepped up its efforts to monitor usage of its stablecoins. Company executives have stressed that the transparency of blockchain records that track Tether transactions makes them unsuitable for abuse and helps authorities track funds.
Tether recently strengthened its monitoring capabilities, collaborating with analytics firms Chainalysis and TRM Labs to better monitor transactions. The company also froze 1,850 wallets last month and recovered $114 million in assets.
In response to the article, Tether CEO Paolo Ardoino said on social media platform X that this is fake news.
As we told WSJ, there is no indication that Tether is under investigation. WSJ is regurgitating old noise. Full stop.
— Paolo Ardoino 🤖🍐 (@paoloardoino) October 25, 2024
This news seems to have a negative impact on the price of Bitcoin. As of 7:25pm UTC on November 25th, Bitcoin was trading at around $66,697, down 1.6% over the past 24 hours.
In its 2024 Q2 Certification Report published on July 31, 2024, Tether Holdings Limited, audited by BDO, confirmed the accuracy of its financial and reserve reports. . The report highlights Tether’s continued financial strength, with record net operating income of $1.3 billion in Q2 2024, contributing to an impressive profit of $5.2 billion in the first half. It shows that. This performance highlights the solidity of Tether’s revenue base, which is primarily driven by investments in traditional asset classes such as U.S. Treasuries.
A key achievement noted in the report is Tether’s unprecedented U.S. Treasury holdings, which exceeded $97.6 billion by June 30, 2024. This makes Tether one of the world’s top holders of U.S. Treasuries, ranking 18th overall and third in terms of purchases of three-month U.S. Treasuries. , followed only by the United Kingdom and the Cayman Islands. The increasing adoption of Tether’s USDt token suggests that it could soon become the largest holder of U.S. Treasuries.
The group’s capital increased by $520 million in the second quarter, despite an unrealized loss of $653 million due to the fall in Bitcoin prices, compared with $165 million from gold investments. partially offset by gains in As of June 30, 2024, Tether’s consolidated net assets amounted to an impressive $11.9 billion.
Tether also highlighted its commitment to transparency and stability, maintaining $5.3 billion in excess reserves to support the stability of the token. The report details that Tether’s assets exceed its liabilities by more than $5.3 billion, confirming Tether’s strong financial position. The company issued over $8.3 billion USDt during the quarter and continues to invest profits in strategic projects to strengthen its ecosystem, further solidifying its leadership in the stablecoin industry.
Tether’s Q2 2024 certificate has been published.
Another great quarter.
A quick overview as of June 30, 2024:
*Net operating income was $1.3 billion.
* Tether’s group capital increased by $520 million to a total of $11.9 billion.
* Excess reserves are $5.33 billion
*That’s all… https://t.co/f0vb4VfmYB
— Paolo Ardoino 🤖🍐 (@paoloardoino) July 31, 2024
Updated October 26, 6:15 a.m. UTC:
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 🤖🍐 (@paoloardoino) October 25, 2024
Featured image via Unsplash
