The US Department of Justice has launched an investigation into stablecoin company Tether, according to a new report.
A criminal investigation into the company and its dollar-pegged stablecoin USDT is underway, led by the U.S. Attorney’s Office in Manhattan, the Wall Street Journal reported.
The Justice Department is investigating “possible violations” of sanctions and anti-money laundering rules, according to people familiar with the matter.
Reacting to the news, Tether CEO Paolo Adroino said there was “no indication” the company was pursuing any investigation, Reuters reported.
The Wall Street Journal report triggered a small depegging of USDT, and the coin, which was designed to remain at $1, is currently trading at $0.9993 at the time of publication.
USDT is the largest stablecoin on the market, with a market capitalization of $119 billion.
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