Tether Denies U.S. Investigation Claims Amid Allegations of Sanctions Violations
Tether responds to allegations of a U.S. investigation into money laundering and sanctions violations, asserting the claims are unfounded and emphasizing transparency in their operations.
Tether, the leading stablecoin issuer, has firmly denied reports of an investigation by U.S. authorities concerning allegations of sanctions violations and anti-money laundering compliance. The Wall Street Journal recently claimed that the Treasury Department and New York’s U.S. attorney’s office were looking into potential illegal funding linked to terrorism and other criminal activities involving Tether.
Tether's Response
In a public statement, Tether characterized the allegations as “pure rank speculation,” insisting they have no knowledge of any such investigation. Tether emphasized its ongoing cooperation with law enforcement to address any misuse of its cryptocurrency. CEO Paolo Ardoino further clarified that the Wall Street Journal's claims were outdated and inaccurate, stating, “WSJ is regurgitating old noise. Full stop.”
The Role of Tether in Cryptocurrency
Despite the controversies, Tether remains a dominant force in the cryptocurrency market, with a market capitalization of around $120 billion. Its function as a settlement currency between various cryptocurrencies underscores its significance, while concerns about the transparency of its reserves persist. Critics have long speculated that Tether may not be fully backed by stable assets, leading to regulatory scrutiny in the past.
In 2021, Tether faced allegations from regulators in New York and the Commodity Futures Trading Commission (CFTC), resulting in fines totaling nearly $60 million.
Assurance on Reserves
At a recent event in Lugano, Switzerland, Ardoino sought to reassure stakeholders about Tether's reserves, asserting that the stablecoin is “100% backed by real assets.” He detailed that Tether holds approximately $100 billion in U.S. treasuries, making it one of the largest investors in U.S. government securities. Additionally, the company has around $5.5 billion in Bitcoin and 48 tons of gold.
Conclusion
As Tether continues to navigate scrutiny and speculation, its leadership remains committed to transparency and compliance. The company aims to solidify its position as a reliable stablecoin amidst the evolving landscape of cryptocurrency regulation.
