Important points:
U.S. authorities are reportedly investigating Tether’s alleged involvement with illegal actors. The Treasury Department is considering sanctions against the company, which could seriously impact trade in the United States. Tether denies all allegations, calling the claims baseless and speculative.
The U.S. Department of Justice, led by the Manhattan Federal Attorney’s Office, has reportedly opened a criminal investigation into Tether with the aim of determining whether third parties used USDT for illegal activities such as terrorist financing and cyber-hacking. It is reported that they have started.
According to the Wall Street Journal, investigators are investigating whether the company’s transactions facilitated money laundering or other illegal financial schemes, including the misuse of coins by groups under U.S. sanctions. It is reported that there are.
Although it is widely used in the global cryptocurrency market, the company has faced intense scrutiny over the years regarding its issuance practices and management of stablecoins. However, this new research focuses on how external users can misuse the platform for illegal activities without direct involvement from the companies themselves.
Treasury considers possible sanctions against Tether
In addition to this, the US Treasury is reportedly considering anti-money laundering penalties and possible sanctions for the use of Tether by sanctioned companies. The Treasury Department’s broader concerns primarily point to the company’s alleged ties to people and entities under U.S. sanctions, including ties to Hamas and Russian arms dealers.
If sanctions are imposed, U.S. persons would be prohibited from doing any business with the company, which could have a material impact on the company’s operations in the United States and abroad.
Tether CEO Paolo Ardoino disputed these allegations, criticizing the report for repeating outdated accusations without concrete evidence. states:
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.
Tether condemns speculation and calls for evidence-based reporting
In response, the company issued a formal statement calling the Wall Street Journal article “reckless” and “baseless.” The company says this claim is not supported by reliable sources and misrepresents its ongoing cooperation with law enforcement agencies around the world.
The company noted that it already has well-developed anti-crime procedures in place and stressed that it carries out very extensive monitoring to prevent abuse.
Additionally, Tether stated that it was not aware of any ongoing investigations into the company. As such, the industry is still waiting for some word from those on the front lines, as potential sanctions against the company will have far-reaching implications for its market position.
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