The Wall Street Journal recently reported that Tether, the company behind the USDT stablecoin, is under U.S. federal investigation for potential anti-money laundering (AML) and sanctions violations. Following this news, Bitcoin’s price dipped from $68,600 to $66,589.
According to the report, prosecutors from the Manhattan U.S. attorney’s office are examining whether third parties are using USDT to bypass legal regulations. However, Tether’s CEO, Paolo Ardoino, refuted the claim, asserting on Twitter, “There is no indication that Tether is under investigation,” labeling the WSJ report as “old noise.”
Tether has long been one of the largest stablecoins, consistently meeting redemption demands and maintaining its peg. Persistent skepticism about Tether’s reserves—estimated at $100 billion—has circulated, though Cantor Fitzgerald CEO Howard Lutnick claims his firm manages the U.S. Treasury bills backing USDT.
Tether has also faced scrutiny from competitors like Coinbase and Circle, who have alleged its potential involvement in illicit activities. In a February statement to Congress, a Circle representative called for a close examination of Tether’s role, citing concerns about its potential ties to financing terrorism.
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