According to Blockworks, rumors have emerged suggesting that Tether may be under federal investigation. The Wall Street Journal reported that federal investigators in Manhattan are examining potential anti-money laundering violations and whether the cryptocurrency has been used to fund illegal activities. Tether has strongly denied these allegations, criticizing the Journal for publishing what it calls reckless and speculative claims without named sources or official confirmation. A Tether spokesperson emphasized that the company has no knowledge of any such investigations.
The report follows a campaign by the conservative nonprofit Consumers’ Research, which has accused Tether of being used by criminal actors. Will Hild, the executive director of Consumers’ Research, stated that the Wall Street Journal article underscores the need for Tether to undergo an audit by a credible third party. Hild warned consumers to be cautious of Tether’s involvement with questionable actors and questioned the company’s reluctance to release an audit.
Tether CEO Paolo Ardoino reassured the public that the company’s reserves for USDT are secure, citing holdings of approximately $100 billion in US Treasurys, 82,000 bitcoin, and 48 tons of gold. Ardoino also noted that the Wall Street Journal did not allege any wrongdoing regarding Tether’s reserve assets. In 2021, Tether settled with the Commodity Futures Trading Commission for $42.5 million over claims that USDT was fully backed by US dollars. Ardoino highlighted Tether’s cooperation with law enforcement agencies, including the voluntary blocking of nearly 2,000 wallets linked to suspected illegal activities.
In September, Tether appointed Jesse Spiro, a former PayPal executive, to lead its government affairs team. Spiro will be responsible for policy and engagement efforts with lawmakers, regulators, and key stakeholders. Tether’s recent actions and statements aim to address concerns and maintain transparency amid ongoing scrutiny.
