Cryptocurrency firm Tether condemned a report from The Wall Avenue Journal (WSJ) posted Friday (Oct. 25) that mentioned federal businesses are investigating the corporate for potential violations of sanctions and anti-money laundering (AML) guidelines.
The WSJ report cited unnamed sources.
“These tales are primarily based on pure rank hypothesis regardless of Tether confirming that it has no data of any such investigations into the corporate,” Tether mentioned in a assertion posted on its web site. “The article additionally carelessly glosses over Tether’s well-documented and intensive dealings with legislation enforcement to crack down on dangerous actors searching for to misuse tether and different cryptocurrencies.”
The WSJ reported that prosecutors on the Manhattan U.S. legal professional’s workplace are whether or not Tether’s cryptocurrency has been utilized by third events to fund unlawful actions or to launder the proceeds from such actions.
It additionally reported that the Division of the Treasury has been contemplating sanctioning the corporate as a result of its cryptocurrency has been utilized by people and teams sanctioned by the U.S. And it mentioned the Division of Justice started an investigation into Tether a number of years in the past.
Neither the Treasury Division nor the Justice Division instantly replied to PYMNTS’ request for remark despatched exterior of regular enterprise hours.
The WSJ article additionally mentioned that the publication had beforehand reported that Tether’s cryptocurrency is utilized by the North Korean nuclear weapons program, Mexican drug cartels, Russian arms corporations, Center Jap terrorist teams and Chinese language producers of chemical compounds used to make fentanyl.
Tether CEO Paolo Ardoino wrote in a Friday publish on social platform X: “As we advised to WSJ, there isn’t any indication that Tether is underneath investigation. WSJ is regurgitating outdated noise. Full cease.”
As we advised to WSJ there isn’t any indication that Tether is underneath investigation. WSJ is regurgitating outdated noise. Full cease.
— Paolo Ardoino ?? (@paoloardoino) October 25, 2024
In one other Friday publish on X, Ardoino wrote that Tether offers with legislation enforcement officers repeatedly and instantly to forestall misuse of the corporate’s stablecoin, USDT, and would know if the corporate was being investigated.
“Primarily based on that, we will affirm that the allegations within the article are unequivocally false,” Ardoino wrote.
At Tether, we deal repeatedly and instantly with legislation enforcement officers to assist forestall rogue nations, terrorists and criminals from misusing USDt. We might know if we’re being investigated because the article falsely claimed. Primarily based on that, we will affirm that the allegations in…
— Paolo Ardoino ?? (@paoloardoino) October 25, 2024
Tether (USDT) is the most important stablecoin by market cap, however it is primarily used as a buying and selling pair on exchanges for liquidity and stability and its regulatory standing could trigger companies to hesitate in totally embracing it throughout their operations, PYMNTS reported Monday (Oct. 21).
