Tether CEO denies WSJ federal investigation report

The US federal government is investigating Tether, the issuer of the world’s largest stablecoin USDT, for possibly violating anti-money laundering rules and sanctions, the Wall Street Journal reported on Friday.

Following the news, the price of Bitcoin dropped from $68,600 to $66,589 at the time of writing.
Prosecutors from the United States Attorney’s Office in Manhattan are investigating whether the cryptocurrency USDT is being used by third parties to evade the law. However, Tether CEO Paolo Ardoino responded to the news by saying that there is no ongoing investigation. “As we told WSJ, there is no indication that Tether is under investigation,” Ardoino wrote on Twitter. “WSJ is regurgitating old noise. Period.” Tether is one of the oldest stablecoins and has always managed to meet redemptions and maintain its peg until now.Over the years there has been suspicion that its $100 billion reserves cannot be found, but the advisor Cantor Fitzgerald representative Howard Lutnick has claimed that his firm is taking care of the US Treasury bills backing Tether tokens.Tether has faced attacks from both Coinbase and Circle for allegedly facilitating the financing of terrorism. “I hope they’re looking at this seriously given Tether’s reputation as well as the data we’ve seen that it’s contributing to the financing of terrorism and other nefarious activities,” a Circle representative told Congress in February. SPECIAL OFFER (sponsored ) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

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