Tether CEO denies reports as US probes and weighs sanctions

Tether CEO Paolo Ardoino has denied reports that lawmakers are investigating the major cryptocurrency company for potential violations of anti-money laundering and sanctions laws.

The reported investigation by Manhattan prosecutors focuses on whether Tether’s cryptocurrency (USDT) is being used to finance or launder money from illegal activities such as drug trafficking or terrorism, according to The Wall Street Journal.

According to WSJ, the US Treasury Department is also considering sanctioning Tether.

Sanctions could prevent Americans from doing business with the company; This is mainly due to the alleged use of the cryptocurrency by sanctioned individuals and groups, including Russian arms dealers and the terrorist group Hamas.

Tether CEO Paolo Ardoino vehemently denied these reports, sharing on

Past criticisms of Tether

In September, Consumer Research published a report criticizing Tether, the issuer of the USDT stablecoin, for its lack of transparency and failure to conduct a full audit of its dollar reserves, despite promises made since 2017.

The report likens Tether’s operations to those of the collapsed FTX and raises concerns about its alleged use to circumvent international sanctions, particularly in countries such as Venezuela and Russia.

Tether’s cryptocurrency, known as a stablecoin, is pegged to the value of the US dollar, unlike more volatile cryptocurrencies such as Bitcoin. This stability makes Tether popular in regions where access to US dollars is restricted or banned.

$190 billion worth of tether is traded globally every day, making it the most widely used cryptocurrency in the world.

While Tether denies being involved in illegal activities, the company has taken steps to prevent misuse of its currency, including partnering with firms that track transactions.