By CryptoSlate | Created at 2024-10-25 19:37:36 | Updated at 2024-10-25 22:31:31
3 hours ago
Tether CEO dismisses report of ongoing federal probe in the US Gino Matos · 20 mins ago · 1 min read
Paolo Ardoino stated that the WSJ is 'regurgitating old noise,' claiming that Tether is not under investigation in the US.
1 min read
Updated: Oct. 25, 2024 at 8:34 pm UTC
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Tether CEO Paolo Ardoino denied reports about the firm being under investigation in the US.
Ardoino’s clarification comes after a Wall Street Journal report claimed that federal prosecutors in Manhattan are allegedly investigating the stablecoin issuer.
Ardoino said:
“WSJ is regurgitating old noise. Full stop.”
According to the WSJ report, the investigations are allegedly related to potential sanctions violations and money-laundering abuses related to Tether USD (USDT). US officials are examining whether third parties have used USDT to fund activities tied to drug trafficking, terrorism, and cybercrime or to launder illicit proceeds.
Additionally, the Treasury Department is allegedly weighing sanctions against Tether due to its high usage among sanctioned entities, including groups like Hamas and Russian arms dealers.
Tether also responded to the report and denied the claims of an investigation.
It added:
“To suggest that Tether is somehow involved in aiding criminal actors or sidestepping sanctions is outrageous. We work actively with US and international law enforcement to combat illicit activity, as we’ve publicly demonstrated many times.”
The probe allegations come after Tether reiterated its commitment to law enforcement in September. The crypto company revealed the establishment of a dedicated External Investigations Unit staffed with former law enforcement officers, prosecutors, and forensic analysts.
Furthermore, Tether stated it had aided 180 agencies across 45 jurisdictions, frozen over 1,850 wallets tied to illicit activities, recovered nearly $114 million, and blocked $225 million connected to fraud before receiving legal orders.
Tether also highlighted its recent partnership with blockchain analytics firms Chainalysis and TRM Labs to bolster its oversight of transaction flows and address compliance.
