The US government’s investigation into Tether (USDT) has shocked the crypto market. After starting an upward trend following the Federal Reserve’s interest rate cut, cryptocurrencies fell sharply on the news.
According to information obtained by the Wall Street Journal (WSJ), US federal law enforcement authorities are scrutinizing the cryptocurrency company Tether for allegedly violating sanctions and anti-money laundering regulations.
The criminal investigation, led by prosecutors from the Manhattan U.S. Attorney’s Office, found that Tether’s virtual currency was not used by third parties to launder or launder proceeds from illegal activities such as drug trafficking, terrorism, or computer hacking. Investigate whether or not.
A graph showing the volatility of the virtual currency market after the Tether survey. (Photo provided by: Press)
Tether (USDT), which is pegged to the US dollar, fell 0.16% to $0.99 following the investigation. Bitcoin, which was previously above $68,000, fell to $66,770, reflecting a decline of 2.35%. Ethereum fell more than 6% to $2,492.
Possible sanctions against Tether
The U.S. Treasury Department is considering sanctions against Tether over concerns that it is widely used by individuals and groups targeted by the U.S., including the Palestinian resistance group Hamas and Russian arms dealers.
If such sanctions were to be imposed, Americans would be prohibited from doing business with Tether.
Tether: the most traded cryptocurrency
Tether, the world’s most traded cryptocurrency, has a value pegged to the dollar, making it a popular alternative in areas where the use of the US currency is restricted.
With a daily trading volume of $190 billion, the US national security trade includes North Korea’s nuclear program, Mexican drug cartels, Russian arms manufacturers, Middle Eastern terrorist organizations, and Chinese fentanyl precursor producers. It has become an important means of financing security challenges. .
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
Tether CEO Ardoino denies investigation claims
Meanwhile, Tether CEO Ardoino said on social media, “As I told WSJ, there is no indication that Tether is under investigation.” WSJ is regurgitating old noise. Full stop. ”
