According to the latest report from the Wall Street Journal (WSJ), Tether, the leading stablecoin issuer, is currently under investigation by the US government. The investigation is aimed at clarifying whether Tether has violated regulations and sanctions related to anti-money laundering.
The criminal investigation, reportedly led by prosecutors at the U.S. Attorney’s Office in Manhattan, focuses on determining whether Tether has been used by third parties to finance illegal activities, such as drug trafficking, terrorism, and hacking, as well as to launder proceeds from these activities.
Bitcoin price recorded a sharp decline following this news, hitting an intraday low of $65,591 before recovering to its current level of $66,821.$LUNC
Tether CEO Paolo Ardoino has strongly denied that his company is under investigation.
“As we have informed the WSJ, there is no indication that Tether is under investigation. The WSJ is simply repeating old information.”
