U.S. authorities are intensifying scrutiny on Tether. The Manhattan U.S. Attorney’s Office has taken the lead in this criminal probe. Law enforcement agents are investigating allegations that some people involved in the use of Tether might use it for illegal activities such as terrorism and hacking.
This investigation is nothing new; reportedly, it has been running for years. Also, reportedly, the U.S Department of Treasury is mulling sanctions against Tether.
The sanctions would bar Americans from doing business with the company. According to the Treasury, this is a result of reported ties between the company and individuals and entities that have already been sanctioned by the U.S., including Hamas and Russian arms dealers.
According to The Wall Street Journal, the daily trading volume of Tether reaches up to $190 billion. This massive usage leads to the conclusion that illegal acts might be facilitated.
Tether CEO denies investigation claims
In response to the allegations, Tether has pushed back hard. The company called the claims “outrageous,” insisting that it does not assist criminals or evade sanctions.
CEO Paolo Ardoino took to X to refute the investigation’s legitimacy. He stated, “As we told WSJ, there is no indication that Tether is under investigation.” Ardoino emphasized that the company maintains regular communication with law enforcement to prevent misuse of its services.
The company vehemently insists that the media should stop making wild accusations without being able to identify reliable sources. According to them, this does nothing but spread wild speculation and misconceptions about this company’s operations.
Tether has engaged in robust cooperation with law enforcement agencies in the hope of preventing any possible abuse of its platform. The situation remains incredibly tense, with the company struggling to respond to these accusations as scrutiny continues to mount.
