Tether Denies U.S. Investigation Allegations Related to AML Violations
Tether has refuted claims of being under investigation by the US government for potential anti-money laundering (AML) violations, following a report from the Wall Street Journal (WSJ). The WSJ article cited unnamed sources and suggested federal investigators were looking into Tether's involvement in illegal activities. Tether labeled these assertions as "pure speculation," lacking named sources or official statements.
A Tether spokesperson criticized the WSJ for making “reckless allegations,” asserting it is “wildly irresponsible” to publish such claims without formal confirmation. Tether stated it has no knowledge of any investigation against the company.
The WSJ report coincides with a campaign from Consumers' Research, a conservative nonprofit, which accused Tether of being associated with "the world’s worst actors." Will Hild, executive director of Consumers' Research, emphasized the need for Tether to undergo an audit by a reputable third party to validate its operations and raised concerns about the company's resistance to stricter oversight.
Tether CEO Paolo Ardoino confirmed that Tether’s reserves remain solid, reporting holdings of approximately $100 billion in US Treasuries, 82,000 bitcoin, and 48 tons of gold, which supports the backing of its USDT. The WSJ article did not allege misrepresentation of reserves or legal breaches regarding asset backing. In 2021, Tether settled with the Commodity Futures Trading Commission (CFTC) for $42.5 million over previous claims regarding USDT's backing.
Ardoino also noted Tether’s cooperation with law enforcement, stating the company has “voluntarily blocked” nearly 2,000 wallets associated with suspected illegal activities.
In September, Tether enhanced its regulatory engagement by hiring Jesse Spiro, a former PayPal executive, to lead its government affairs team. Spiro's responsibilities include fostering relationships with lawmakers, regulators, and other key stakeholders to ensure policy transparency for Tether's operations.