In the early hours of yesterday, The Wall Street Journal reported that the US Treasury is considering sanctions against Tether, the issuer of the stablecoin USDT.
This criminal investigation is led by prosecutors from the Manhattan U.S. Attorney's Office, focusing on whether USDT has been used by third parties to fund illegal activities such as drug trafficking, terrorism, and hacking, or to launder related proceeds.
At the same time, the US Treasury is considering sanctions against Tether due to the widespread use of USDT by individuals and entities under US sanctions, including the terrorist organization Hamas and Russian arms dealers.
Upon this news, Bitcoin dropped directly from £68,000 to £66,000, a decline of £2,000. Shortly after, Tether's CEO responded to the FUD (Fear, Uncertainty, Doubt) claims, stating: "As we told The Wall Street Journal, there is no indication that Tether is under investigation; The Wall Street Journal is just repeating old news.
However, within an hour, Bitcoin rebounded back to £68,000. Data shows that during this time, the entire network saw liquidations of £127 million, with long positions liquidating £109 million and short positions liquidating £18.22 million.
Regarding the risks associated with USDT, it is always said that 'bad news travels fast.' Especially in the cryptocurrency market driven by fear (FOMO), USDT, as the most widely used entry-level virtual asset, would certainly trigger a 'major earthquake' in the market if it were to 'collapse.' It’s important to note that in the crypto space, who doesn’t have thousands or tens of thousands of USDT on hand?
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