According to Blockworks, rumors have emerged that Tether may be under federal investigation. The Wall Street Journal reported that federal investigators in Manhattan are examining possible anti-money laundering violations and whether the cryptocurrency was used to fund illegal activity. Tether has strongly denied the allegations, and the Journal criticized the company for publishing what it called reckless and speculative claims without citing sources or official confirmation. A Tether spokesperson confirmed that the company is not aware of any such investigations.
The report comes on the heels of a campaign by the conservative nonprofit Consumer Research, which has accused Tether of being exploited by criminals. Will Held, executive director of Consumer Research, said the WSJ article underscores the need for Tether to be audited by a credible third party. Held warned consumers to be wary of Tether’s involvement with questionable entities and questioned the company’s reluctance to issue an audit.
Tether CEO Paolo Ardoino has reassured the public that the company’s USDT reserves are safe, citing holdings of around $100 billion in US Treasuries, 82,000 Bitcoin, and 48 tons of gold. Ardoino also noted that the Wall Street Journal has not alleged any wrongdoing regarding Tether’s reserve assets. In 2021, Tether reached a $42.5 million settlement with the Commodity Futures Trading Commission over allegations that USDT was fully backed by the US dollar. Ardoino highlighted Tether’s cooperation with law enforcement agencies, including voluntarily banning nearly 2,000 wallets linked to suspected illegal activity.
