U.S. federal authorities are currently examining stablecoin issuer Tether (CRYPTO: USDT) for potential infractions of U.S. sanctions and anti-money-laundering regulations, according to a report.
What Happened: This inquiry, conducted by the Manhattan U.S. Attorney’s Office, is investigating possible misuse of Tether’s stablecoin in activities like drug trafficking, terrorism financing, and laundering proceeds from these illicit actions, The Wall Street Journal reported.
While Tether CEO Paolo Ardoino has not responded to queries from Benzinga, he termed the WSJ report as regurgitation of old noise.
“As we told to WSJ there is no indication that Tether is under investigation. WSJ is regurgitating old noise. Full stop,” he stated on Twitter.
In a statement sent to Benzinga, Will Hild, Executive Director of Consumers’ Research said that the development emphasizes what Consumers’ Research has been saying for months.
“We have worked hard to educate consumers on Tether’s shady practices and record of transparency refusal, and we are proud to see our warnings be heard. For years Tether has bent over backwards to keep …
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