Tether Responds to WSJ Claims of US Probe

By: Eliza Bennet

Recent reports from The Wall Street Journal (WSJ) have thrust Tether, the issuer of the renowned stablecoin USDT, into the spotlight once again. The WSJ alleged that Tether is under federal investigation in the United States for potential violations related to sanctions and anti-money laundering (AML) regulations. This report claims that the Manhattan US Attorney’s Office prosecutors are examining whether USDT has been misused by third parties to fund illicit activities, including drug trafficking, terrorism, and cybercrimes, or to launder illegal proceeds.

The WSJ report further speculates on possible sanctions brewing against Tether by the US Treasury Department over the extensive use of USDT among sanctioned groups such as Hamas and various Russian arms dealers. These allegations come amid heightened scrutiny over stablecoins due to their pivotal role in the cryptocurrency ecosystem and their potential misuse given their vast acceptance in digital finance.

Tether's leadership, particularly CEO Paolo Ardoino, has vigorously denied these claims, criticizing the WSJ for what they term "irresponsible reporting." In an official statement, Tether rejected the accusations, emphasizing that the article was replete with unfounded speculation, given that they had not been notified of any federal investigations. Ardoino took to social media to emphasize transparency and continue the company's commitment to cooperate with law enforcement agencies globally to combat the misuse of cryptocurrencies such as Tether’s stablecoin offerings.

Furthermore, Tether highlighted its proactive engagement in curbing illicit activities in collaboration with law enforcement entities. The company proudly states its pivotal role in aiding over 180 agencies across 45 jurisdictions and its efforts to freeze and recover substantial amounts linked to illegal dealings. Tether reiterated its back-end efforts by establishing an External Investigations Unit involving former law enforcement officers, prosecutors, and forensic analysts, showcasing its commitment to proactive compliance and ethics in crypto finance.