New York, Monday, October 28, 2024 – US authorities are intensifying scrutiny on Tether, the issuer of the world’s largest stablecoin, over potential involvement in criminal activities, according to The Wall Street Journal.
The US Attorney’s Office for the Southern District of New York is reportedly examining whether third parties are using Tether’s USDT stablecoin for illicit activities, including terrorism and hacking.
The investigation, led by the Manhattan US Attorney’s Office, is assessing possible anti-money laundering violations linked to Tether’s stablecoin.
The Treasury Department is also considering sanctions against Tether, potentially restricting Americans from transacting with the company. Concerns focus on the stablecoin’s use by individuals and entities under US sanctions, including alleged ties to groups in Russia and organizations such as Hamas.
In response, Tether CEO Paolo Ardoino refuted the report, calling the allegations “old noise” and emphasizing Tether’s ongoing cooperation with law enforcement.
A spokesperson for Tether condemned the report, citing the company’s “extensive dealings” with authorities to prevent misuse of its stablecoin. The spokesperson criticized the WSJ article for alleged speculation, asserting that Tether remains unaware of any current investigation.
This is not the first time Tether has faced regulatory scrutiny.
The Commodity Futures Trading Commission previously accused Tether of issuing misleading statements about its dollar reserves, while US lawmakers have called for further inquiries into its financial practices.
