US Government Investigating Tether for Alleged Involvement in Funding Illicit Activities

Investigation Launched into Tether Operations

Concerns Raised Over Tether’s Use in Illicit Transactions

Authorities in the United States are currently looking into Tether, a major stablecoin issuer, amid suspicions of its potential role in financing illegal activities. The Justice Department and the Treasury Department have initiated a probe into Tether’s activities, particularly focusing on its connections to transactions involving sanctioned individuals and groups such as Hamas and Russian arms dealers.

CEO Denies Allegations

Criticism of Wall Street Journal Report

Tether’s CEO, Paolo Ardoino, has dismissed the allegations as old news and strongly refuted any suggestions that Tether supports criminal activities. Ardoino expressed his frustration over the implications raised in the report and emphasized Tether’s commitment to working with law enforcement agencies to prevent the misuse of its stablecoin.

Market Response and Regulatory Scrutiny

Impact on Cryptocurrency Market

The investigation has had repercussions on the cryptocurrency market, with Bitcoin and Ethereum experiencing declines in their value. This scrutiny adds to Tether’s history of regulatory challenges, including a significant fine imposed by the Commodity Futures Trading Commission in 2021. Industry experts have highlighted the mounting pressure on Tether from US authorities, further complicating its position in the market.