In a current report by the Wall Avenue Journal (WSJ), it was alleged that Tether is presently beneath federal investigation for potential violations associated to sanctions and anti-money laundering (AML) laws within the US.
The inquiry, reportedly led by prosecutors from the Manhattan US Lawyer’s Workplace, is alleged to give attention to whether or not Tether’s stablecoin, USDT, has been utilized by third events to finance unlawful actions akin to drug trafficking, terrorism, and hacking, or to launder the proceeds from these actions.
Tether CEO Denies Investigation Claims
In response to those severe allegations, Tether has issued a assertion strongly criticizing the WSJ’s reporting. The corporate referred to as the article “wildly irresponsible,” asserting that it’s inappropriate for the WSJ to publish such definitive claims with out verified sources or corroboration from authorities.
The stablecoin issuer additionally emphasised that it has no data of any ongoing investigations, characterizing the report as based mostly on “pure rank hypothesis.”
Tether’s CEO, Paolo Ardoino, additionally took to social media platform X (previously Twitter) to additional tackle the problem, stating, “As we informed to WSJ, there is no such thing as a indication that Tether is beneath investigation. WSJ is regurgitating outdated noise. Full cease.”
This response underlines the corporate’s dedication to transparency within the face of those allegations and the elevated scrutiny it has confronted lately, not solely from the US authorities but in addition from information retailers such because the WSJ, and its stance in opposition to what it considers to be unfounded allegations.
Dedication To Combating Cryptocurrency Misuse
The article from the WSJ additionally reportedly downplays Tether’s in depth collaborations with regulation enforcement companies geared toward combating illicit actions involving cryptocurrencies.
Tether highlighted its proactive measures to work with the authorities to make sure that its platform is just not misused by unhealthy actors. Their response concluded:
The article additionally carelessly glosses over Tether’s well-documented and in depth dealings with regulation enforcement to crack down on unhealthy actors searching for to misuse tether and different cryptocurrencies.
Featured picture from DALL-E, chart from TradingView.com