Tether CEO Paolo Ardoino has vehemently denied recent reports suggesting that the firm is under investigation in the United States. The clarification from Ardoino comes in response to a report from the Wall Street Journal which claimed that federal prosecutors in Manhattan are conducting an investigation into the stablecoin issuer.
In a statement, Ardoino dismissed the reports as old news, stating, “WSJ is regurgitating old noise. Full stop.” Tether also released an official statement refuting the claims of an investigation and criticizing the Wall Street Journal for what they deemed as “irresponsible reporting.” The company stated, “These stories are based on pure rank speculation despite Tether confirming that it has no knowledge of any such investigations into the company.”
Tether further highlighted its efforts to combat illicit activities and collaborate with authorities worldwide. The company emphasized its commitment to law enforcement, citing the establishment of a dedicated External Investigations Unit comprised of former law enforcement officers, prosecutors, and forensic analysts. Tether revealed that it had assisted 180 agencies across 45 jurisdictions, frozen over 1,850 wallets linked to illicit activities, recovered nearly $114 million, and blocked $225 million associated with fraud prior to receiving legal orders.
The allegations of a probe reportedly stem from concerns related to potential sanctions violations and money laundering abuses involving Tether USD (USDT). The Wall Street Journal’s report, citing anonymous sources, suggested that US officials are investigating whether USDT has been used by third parties to finance activities linked to drug trafficking, terrorism, cybercrime, or to launder illicit proceeds. Additionally, the report claimed that the Treasury Department is considering sanctions against Tether due to its significant usage among sanctioned entities, including groups like Hamas and Russian arms dealers.
In response to the report, Tether has pushed back against the allegations, labeling them as irresponsible reporting. The company’s proactive measures to combat illicit activities and its cooperation with law enforcement agencies demonstrate its commitment to upholding regulatory standards and ensuring the integrity of its operations.
Overall, Tether remains steadfast in its efforts to address any potential concerns raised by the recent reports, emphasizing transparency and compliance with regulatory requirements. The company’s commitment to working closely with authorities and implementing robust measures to combat illicit activities underscores its dedication to maintaining a trustworthy and secure ecosystem for its users.
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