👮♂️The Wall Street Journal said Tether is under federal investigation, and its CEO denied the allegations!
Big news is coming! The Wall Street Journal reported that the U.S. federal government is investigating Tether, the issuer of the world's largest stablecoin USDT, for suspected violations of anti-money laundering regulations and sanctions policies.
As soon as the news came out, the price of Bitcoin also fell. This morning, it fell from $68,600 to below $66,000 in a short period of time. The current price remains around $67,000.
However, Tether's CEO Paolo Ardoino came out to clarify that they are not under investigation at all. He said on X that there is no sign that Tether is accepting the so-called investigation reported by the Wall Street Journal. It implies that the Wall Street Journal is just rehashing old news.
It is worth noting that despite the constant turmoil, Tether, as the leader in the stablecoin market, has always maintained its peg to the US dollar and successfully met all redemption requirements.
Although some people have doubted whether its $100 billion reserves really exist, the CEO of Cantor Fitzgerald Asset Management, which has $1.32 billion, said that it manages U.S. Treasury bonds that include Tether tokens.
In addition, Tether has been publicly accused by Coinbase and Circle, who suspect that Tether may assist terrorists in money laundering.
Among them, Circle representatives raised the issue to Congress in February, considering Tether's data on facilitating terrorist financing and other illegal activities, and its reputation and other related issues, and hoped that the relevant departments would take this issue seriously.
🗣️ Conclusion:
In this controversy surrounding Tether, we see a microcosm of the regulatory challenges in the cryptocurrency field. Although its CEO denied the rumors of investigation, the market is still highly sensitive to the compliance of stablecoins. This incident is not only a test for Tether, but also a challenge to the transparency and compliance of the entire industry. In the future, we look forward to a healthier and more transparent cryptocurrency market environment.
💬 What do you think of this controversy about Tether? What impact do you think these allegations will have on the entire cryptocurrency stablecoin market? What do you think about the future regulation of stablecoins?
