According to (Wall Street Journal) reports, the U.S. federal government is investigating whether Tether, the world's largest stablecoin issuer, has violated sanctions and anti-money laundering rules.

WSJ: The U.S. government is investigating Tether

According to (Wall Street Journal) reports, the U.S. federal government is investigating whether Tether, the world's largest stablecoin issuer, has violated sanctions and anti-money laundering rules.

This criminal investigation is led by prosecutors from the Manhattan U.S. Attorney's Office, aimed at investigating whether cryptocurrencies are being used by third parties to fund illegal activities such as drug trafficking, terrorism, and hacking, or to launder profits from these activities.

The Treasury has been weighing whether to impose sanctions on Tether, as the stablecoin USDT has been used by individuals and entities sanctioned by the U.S., including the terrorist organization Hamas and bad actors in Russia. The report states that if the Treasury decides to impose sanctions on Tether, it will focus on preventing Americans from doing business with Tether.

CEO Paolo Ardoino refutes

Tether CEO Paolo Ardoino posted on X to refute:

There is no indication that Tether is under investigation. WSJ is just repeating old claims.

He added that Tether has been regularly communicating with law enforcement officials to prevent rogue states, terrorists, and criminals from abusing USDT. If Tether is indeed being investigated as claimed in the article, the company would certainly be aware, so the report is absolutely incorrect.

Tether vs. the media

Stablecoin leader Tether has long had numerous verbal battles with major media. Bloomberg raised many questions about Tether's reserve assets in October 2021 and published (Has anyone seen Tether's billions?). Bloomberg and CoinDesk have also asked the New York Attorney General's Office to disclose relevant information about Tether, revealing that document contents contradict Tether's public claims. The Wall Street Journal has also published negative reports about Tether.

(Tether vs. the media! Documents reveal Tether's reserve assets once involved Chinese company securities)

Even Forbes published a feature on Tether in August 2023, questioning Tether's apparent sustained growth while its profits seem to be declining, and stating that the indicators used in its report are inconsistent, maintaining its tradition of confusing the public.

(Chain News actually dissects Forbes report: Tether's profits are declining, using different indicators to confuse the public)

However, every time Tether CEO Paolo Ardoino faces media attacks, he always jumps out to refute, saying everyone is just spreading FUD. The market value of USDT recently surpassed $120 billion, setting a new historical high, accounting for 68% of the total stablecoin market value.

This article Wall Street Journal: U.S. federal authorities are investigating Tether first appeared in Chain News ABMedia.

#USDT