The ongoing market correction largely stems from a wave of investor sell-offs. However, one of the most pivotal factors driving current market sentiment is a major development involving Tether’s stablecoin, USDT.
Currently, Tether is facing scrutiny from the U.S. Department of Justice (DOJ), investigating potential breaches of anti-money laundering regulations and international sanction policies. The DOJ is examining whether Tether has inadvertently facilitated money laundering activities or been involved in transactions linked to conflict financing, particularly with regard to the tensions between Russia and Ukraine. This probe underscores the DOJ's commitment to enforcing stringent financial compliance and ensuring that stablecoins like USDT are not exploited for illicit transactions or wartime funding.
