A new team of federal prosecutors in the U.S. Justice Department is reportedly taking a fresh look at the ongoing investigation into contentious stablecoin issuer Tether, according to a report by Bloomberg released on Monday.
According to a report from last July, federal prosecutors were reportedly looking into whether or not Tether’s executives had engaged in bank fraud as part of a criminal investigation. After looking into Tether’s dubious banking relationships, the previous team of investigators was unable to come to a firm conclusion, which led them to transfer the case.
The report states that Damian Williams, the US Attorney for the Southern District of New York, is now in charge of the crucial investigation. It’s unclear at this time whether the investigation will lead to any charges against the executives for wrongdoings. Tether’s chief technology officer, Paolo Ardoino, recently tweeted that Bloomberg was “recycling old news” and downplayed the significance of the investigation.
Bloomberg recycling old news from 2018 again. Poor guys, can’t wait to release https://t.co/InAbND4VN3 for financial data and news. https://t.co/z479Ft53LM pic.twitter.com/bCO0Hb0UZ8
— Paolo Ardoino ?? (@paoloardoino) October 31, 2022
With a market value of roughly $69.1 billion, Tether continues to be the most valuable cryptocurrency worldwide.
After being sued for allegedly using a cover-up to conceal an apparent loss of $850 million, Tether and sister exchange Bitfinex came to a settlement agreement with the New York Attorney General’s Office (NYAG) in February 2021. Early in August, Coindesk reported that there may be a criminal investigation into the exchange.
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