đ¨Tether Faces Renewed Scrutiny Amid US Government Investigation Reportsđ¨đ¨
Tether, the issuer behind the USDT stablecoin, is once again in the spotlight following a report from The Wall Street Journal, suggesting the U.S. government is investigating the company. According to sources familiar with the matter, the U.S. Department of Justice is conducting a long-running investigation into the alleged use of USDT for illicit activities, including money laundering.
Simultaneously, the Treasury Department is reportedly exploring sanctions against Tether due to its use by sanctioned individuals and groups, including Hamas and Russian arms dealers. With $190 billion in USDT traded daily, the implications of such investigations are significant for the broader crypto market.
In response, Tether CEO Paolo Ardoino dismissed the report as âold noise,â stating that thereâs no evidence Tether is under investigation. He emphasized Tetherâs collaboration with law enforcement, calling the WSJâs claims irresponsible and unsubstantiated.
Despite Tetherâs reassurances, the report has rattled the market, reflecting ongoing concerns about regulatory scrutiny in the cryptocurrency sector.
