The US government is investigating Tether, the issuer of the largest stablecoin USDT, for possible violations of anti-money laundering rules and sanctions, the Wall Street Journal reports.

The price of Bitcoin fell from $68,600 to $66,589 on the news.

Manhattan prosecutors are investigating whether USDT is being used to circumvent the law.

Tether CEO Paolo Ardoino denies the investigation.

Tether maintains its peg to the dollar despite years of suspicions that its reserves are insufficient.