$BTC $BNB $ETH USDT Cryptocurrency Hype

Tether CEO Paolo Ardoino has denied claims by the Wall Street Journal that the company is being investigated by U.S. federal authorities for possible money laundering.

“As we were told by the WSJ, there is no evidence that Tether is under investigation. The WSJ is recycling old hype. Period,” Paolo Ardoino wrote.

The report caused immediate volatility in the cryptocurrency market. Bitcoin, which had been approaching the $70,000 threshold, dropped significantly from $67,000 to $65,000 following the news. However, Ardoino’s quick denial helped stabilize the market, with Bitcoin prices rising to around $66,700.

The Wall Street Journal published an exclusive report earlier today claiming that the Manhattan District Attorney’s Office is investigating the stablecoin provider. The potential charges center around whether third parties used Tether’s platform to facilitate illegal activity

WSJ’s allegations against Tether led to a temporary market drop

Shortly after the WSJ report, Paolo Ardoino said that Tether had not seen any signs of a federal investigation.