Tether CEO Denies WSJ Report Of Federal Investigation
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The U.S. federal government is investigating Tether issuer of the worlds largest stablecoin, USDT for possibly violating anti-money laundering rules and sanctions, the Wall Street Journal reported on Friday.
- Following the news, Bitcoins price plummeted from $68,600 to $66,589 at writing time.
Prosecutors at the Manhattan U.S. attorneys office are investigating whether the USDT cryptocurrency is being used by third parties to evade the law. - However, Tether CEO Paolo Ardoino responded to the news by saying that no such investigation is underway.
- As we told to WSJ there is no indication that Tether is under investigation, Ardoino wrote to Twitter. WSJ is regurgitating old noise. Full stop.
- Tether is one of the longest-standing stablecoins and has always managed to satisfy redemptions and maintain its peg until now.
- Suspicion has circulated throughout the years that its $100 billion reserves cannot be found, but Cantor Fitzgerald CEO Howard Lutnick has claimed that his company looks after the US Treasury bills that are backing Tethers tokens.
- Tether has faced attacks from both Coinbase and Circle for allegedly facilitating terrorist financing. I hope that theyre looking at this seriously given Tethers reputation, as well as the data that weve seen that theyre contributing to terrorist financing and other malign activities, a Circle representative told Congress in February.
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