Tether Representative Criticizes WSJ Publication, Affirms Lack of Awareness Regarding U.S. Investigation
In a series of statements, Tether, a leading cryptocurrency firm, has denied claims that it is under investigation by the U.S. Attorney's Office in Manhattan for potential violations of anti-money-laundering (AML) and sanctions rules.
The Wall Street Journal reported that federal prosecutors in Manhattan are examining whether Tether’s cryptocurrency has been used by third parties to fund illegal activities or launder proceeds from such activities. However, Tether has publicly denied having any knowledge of such investigations.
The allegations against Tether also suggest that the U.S. Department of the Treasury has considered sanctioning the firm due to its cryptocurrency’s alleged use by sanctioned individuals and groups. Moreover, the Department of Justice is said to have begun an investigation into Tether several years ago, focused on money laundering and the misuse of Tether by criminal networks for drug trafficking, terrorism, and hacking.
In response to these reports, Tether has emphasised its cooperation with law enforcement in cracking down on illicit uses of their cryptocurrency. The company's CEO, Paolo Ardoino, and a Tether spokesperson have both stated that there is no indication that the company is under investigation.
Despite Tether's denials, no new facts have been provided about the potential violations of AML and sanctions rules. The ongoing nature of the investigations and the fact that no official charges have been filed against the cryptocurrency firm remain unchanged.
It is important to note that the identity of the specific cryptocurrency firm under investigation was not disclosed in the Wall Street Journal article. As such, it remains unclear whether Tether is the only firm under scrutiny or if others are also being investigated.
In conclusion, while credible media reports indicate an ongoing federal probe into Tether regarding AML and sanctions compliance, the company denies knowledge of these investigations. There has been no official public confirmation of the investigation from government agencies as of the latest reports.
- Amid the ongoing allegations, financial institutions and businesses are closely monitoring Tether's situation, as the outcome could significantly impact the cryptocurrency market's finance and technology sectors.
- Despite the rumors of investigations, numerous technology companies continue to operate with Tether, viewing it as a viable option due to its strong presence in the finance industry.
