🏮🏮I WOKE UP AND MANY OF MY POSITIONS WERE LIQUIDATED⁉️WHAT HAPPENED LAST NIGHT? ⛔⛔🤔
On October 25, an exclusive report from the Wall Street Journal brought turmoil to the cryptocurrency market, suggesting that U.S. government agencies are investigating Tether, the stablecoin issuer behind USDT, for potential illicit activities. According to the report, the Department of Justice and the Treasury Department are scrutinizing Tether, suspecting its involvement in facilitating illegal financial transactions. In response, Tether’s CEO, Paolo Ardoino, dismissed the report, calling it “old noise” meant to spread unfounded fears.
The Wall Street Journal report alleged that the U.S. Attorney’s Office for the Southern District of New York has been investigating Tether for years. Additionally, the Treasury Department is reportedly considering sanctions due to Tether’s supposed links with sanctioned entities. Tether denied the allegations, describing them as “outrageous,” and highlighted its history of cooperating with over 145 law enforcement agencies to recover approximately $108.8 million in USDT tied to illicit activities.
The investigation news immediately impacted cryptocurrency prices. Bitcoin, for example, fell from $67,367 to $66,016, with similar drops in Ethereum, BNB, Solana, and XRP. The market's uncertainty led to widespread liquidations as traders moved to reduce risk, exacerbating price declines across major cryptocurrencies. Ardoino attempted to calm markets, stating that the Wall Street Journal report lacked substantial evidence and dismissed it as a “rehash of old rumors.
This isn’t the first regulatory challenge for Tether. In 2021, Tether and Bitfinex were fined $42.5 million by the Commodity Futures Trading Commission (CFTC) for regulatory violations. Earlier this year, Brad Garlinghouse, CEO of Ripple, also hinted at the possibility of increased scrutiny on Tether, adding to the ongoing narrative of regulatory pressure on the stablecoin issuer.
⛔All this is called market manipulation!
Stay alert and vigilant.
