Tether CEO, Paolo Ardoino, has denied the reports claiming that lawmakers are investigating the cryptocurrency company for potential violations of anti-money laundering and sanctions laws. The investigation, led by Manhattan prosecutors, is looking into whether Tether’s cryptocurrency, USDT, has been used to finance illegal activities such as drug trafficking, terrorism, or money laundering.
Additionally, the U.S. Treasury Department is reportedly considering imposing sanctions on Tether. These sanctions could prohibit Americans from engaging in business with the company due to allegations that its cryptocurrency has been utilized by sanctioned individuals and groups, including Russian arms dealers and the terrorist organization Hamas.
Ardoino took to X to refute these reports, stating, “As we told WSJ, there is no indication that Tether is under investigation. WSJ is regurgitating old noise. Full stop.”
In the past, Tether has faced criticism for its lack of transparency and failure to conduct a full audit of its dollar reserves, despite assurances dating back to 2017. A report released by Consumers’ Research in September raised concerns about Tether’s alleged involvement in circumventing international sanctions, particularly in countries like Venezuela and Russia.
Tether’s stablecoin, which is pegged to the value of the U.S. dollar, offers stability compared to more volatile cryptocurrencies like Bitcoin. This has made Tether popular in regions where access to the U.S. dollar is limited or prohibited. With approximately $190 billion worth of tether traded globally each day, it is the most widely used cryptocurrency in the world.
Despite the allegations, Tether has denied any association with illegal activities and has implemented measures to prevent misuse of its currency. This includes partnering with firms that monitor transactions to ensure compliance with regulations.
Overall, Tether continues to be a prominent player in the cryptocurrency market, but ongoing scrutiny and investigations may impact its reputation and operations in the future. Investors and users of Tether should stay informed about developments surrounding the company to make well-informed decisions regarding their involvement with the stablecoin.