Tether Denies Federal Investigation Over Alleged Money Laundering Violations
Rumors indicate that Tether may be under federal investigation.
The Wall Street Journal reports that US government investigators in Manhattan are examining alleged anti-money laundering violations involving Tether and potential funding of illegal activities through the cryptocurrency. The report cites unnamed sources.
Tether has denied these allegations, stating that the article is based on speculation without confirmation from authorities. A Tether spokesperson criticized the WSJ for its lack of named sources and asserted that the company has no knowledge of any ongoing investigations.
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This report follows a campaign by Consumers’ Research, which claims Tether is used by “the world’s worst actors.” Executive director Will Hild emphasized the need for Tether to undergo an audit by a credible third party, raising concerns about the company's associations with criminal elements.
Tether CEO Paolo Ardoino stated that Tether's reserves for USDT are secure, claiming approximately $100 billion in US Treasurys, 82,000 bitcoin, and 48 tons of gold.
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The WSJ article does not accuse Tether of misrepresenting or violating laws regarding its reserve assets. In 2021, Tether settled with the Commodity Futures Trading Commission for $42.5 million over claims related to its backing by US dollars.
Ardoino noted that Tether has cooperated with law enforcement, blocking almost 2,000 wallets linked to suspected illegal activity.
In September, Tether appointed Jesse Spiro, a PayPal veteran, to lead its government affairs team, focusing on policy and engagement with lawmakers and regulators.