Tether is facing scrutiny from US federal officials regarding issues of sanctions and money laundering. Sources indicate that Tether (USDT) is coming under scrutiny due to its potential support of third parties engaged in illegal activities at the Attorney’s Office for Manhattan. Accusations of drug trafficking, terrorism, cyber crimes and of having a money laundering lawyer circle the firm as well.
Criminals Have Their Eyes in Tether
Tether has now become the subject of possible Treasury sanctions. The usage of USDT stablecoin by Hamas and Russian weapons dealers who have been sanctioned by US authorities has also raised eyebrows. If Tether’s sanctions were to be leveled, it would essentially cut off US persons and businesses from trading with the crypto firm.
Even their stablecoin USDT has faced chief regulatory scrutiny recently. Unlike other volatile cryptocurrencies, USDT is pegged against the US dollar which makes it practical in places where American cash is being stifled by US Aaron.
USDT has a daily trading volume of $190 billion and is the most popular stablecoin. Apparently these currencies are involved in supporting national security concerns. USDT is reported to have financed North Korean nuclear ambitions, funded Mexican drug gangs, supported Russian war suppliers, boosted Middle Eastern terrorists, and aided Chinese fentanyl wafers.
These are not the first allegations Tether had to face in its life span as they have always combated authorities and regulators. It was previously reported that the Department of Justice first looked into the fabrication of documentation with the purpose of the supporters of USDT accessing the global financial market.
Tether seems to distance itself from any wider investigation. A business director arguing to The Wall Street Journal stated that ‘It’s an extraordinarily outrageous claim to suggest that Tether is somehow assisting criminal actors, or evading sanctions.’ They further stated that the company collaborates with US and international law enforcement “to erase illegal activities.”
