Latest Update on Tether (USDT) Under U.S. Government Scrutiny

On October 25, 2024, Cryptonews released an important update regarding an ongoing investigation by the U.S. government into Tether, the firm responsible for the USDT stablecoin. This investigation, spearheaded by the U.S. Department of Justice (DOJ), follows earlier reports in March 2024 by The Block, which highlighted concerns around Tether’s transactions through certain Russian exchanges under international sanctions.

Yes, the U.S. government is actively examining Tether for potential breaches of sanctions and anti-money laundering protocols. These inquiries stem from allegations that USDT may have facilitated financial transactions for parties linked to illicit activities such as money laundering, terrorism financing, and sanctions evasion. One significant issue involves approximately $18 billion in USDT reportedly channeled through Garantex, a Russian-based exchange facing U.S. and U.K. sanctions due to alleged ties to criminal organizations.

This investigation is part of broader federal initiatives by the DOJ and additional agencies to ensure stablecoins like USDT adhere to international regulatory standards, preventing misuse to evade legal and financial systems. Tether, in response, emphasizes its compliance efforts, noting that it collaborates with law enforcement agencies and takes action against wallets connected to criminal activities. Nonetheless, regulatory scrutiny on stablecoins is intensifying as authorities weigh potential threats to national security and economic stability posed by digital assets.

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