Investigation Details: On October 25, 2024, the Wall Street Journal reported that the U.S. Department of Justice (DOJ) is investigating Tether for potential violations of sanctions and anti-money-laundering laws. The inquiry reportedly focuses on whether Tether was used by bad actors for illegal activities like drug trafficking and cybercrime. Investigators are also exploring if sanctions should be imposed on Tether to prevent U.S. businesses from dealing with the company .
Tether’s Response: Tether’s CEO Paolo Ardoino quickly dismissed the report, calling it "old noise" and speculation. Tether emphasized its cooperation with global law enforcement, claiming it has worked to monitor and prevent illicit activities within the USDT ecosystem. In recent actions, Tether froze over $225 million in USDT linked to fraud, underscoring its stance against misuse of its platform.
Community Reactions and Market Impact: The report stirred mixed reactions across the crypto market, with prices for assets like Bitcoin and Ethereum briefly dropping. Some observers argue the investigation may be politically motivated, due to Tether’s ties to Cantor Fitzgerald, led by a figure supportive of political figures in opposition to the current administration. Despite the response, Tether has also highlighted its transparency, suggesting the report ignored their ongoing cooperation and oversight efforts.
This combination of scrutiny, transparency, and market dynamics keeps Tether and USDT at the forefront of crypto news and debate.
