October 26, 2024 – (New York) The US federal government is reportedly investigating prominent stablecoin issuer Tether amid concerns over its possible involvement in funding illegal activities. It is being According to an exclusive report in the Wall Street Journal on October 25, both the Justice Department and the Treasury Department are investigating Tether’s operations and are investigating whether it is involved in transactions related to sanctioned individuals or entities, including Hamas and the Russian military. Tether has come under intense scrutiny due to its widespread use. dealer.
The investigation, led by the U.S. Attorney’s Office for the Southern District of New York, focuses on the potential use of Tether’s USDT for money laundering and other criminal activities. The investigation has reportedly been ongoing for several years. Tether CEO Paolo Ardoino dismissed the news as “old noise” and expressed outrage at its content, saying the article suggested Tether was supporting criminal enterprises. It was argued that the implication was inaccurate.
Tether’s daily trading volume is estimated at $190 billion, highlighting its importance in the cryptocurrency ecosystem. In response to the allegations, Tether issued a statement condemning the Wall Street Journal’s “reckless” reporting and highlighting its commitment to working with law enforcement to combat stablecoin abuse.
This research had a noticeable impact on the crypto market, with Bitcoin falling from $67,367 to $66,016 and Ethereum falling from $2,505 to $2,461. Other major cryptocurrencies such as BNB and Solana also fell.
The investigation adds to Tether’s history of regulatory scrutiny, which includes a $42.5 million fine imposed by the Commodity Futures Trading Commission (CFTC) in 2021 for violations of trading regulations. Industry experts, including Ripple CEO Brad Garlinghouse, say there is growing pressure on Tether from U.S. authorities.
