Tether CEO Paolo Ardoino denied reports about the company is being investigated in the US.
Ardoino’s clarification is coming to a Wall Street Journal report claimed that federal prosecutors in Manhattan are reportedly investigating the stablecoin issuer.
Ardoino said:
“WSJ is regurgitating old noises. Point.”
Tether also denied the claims of an investigation in an official statement and blasted the Wall Street Journal for “irresponsible reporting.”The company added:
“These stories are based on pure speculation, despite Tether confirming that it is not aware of any such investigations into the company.”
Tether also stated that the article “glossed over” its “well-documented” efforts to crack down on bad actors in collaboration with authorities around the world.
The investigation’s allegations come after Tether repeated his commitment to law enforcement in September. The crypto company revealed the creation of a special external investigative unit staffed with former law enforcement officers, prosecutors and forensic analysts.
Additionally, Tether stated that it had assisted 180 agencies in 45 jurisdictions, frozen more than 1,850 wallets linked to illegal activity, recovered nearly $114 million, and blocked $225 million related to fraud before receiving legal orders.
Rumors of an investigation
According to the WSJ report, the investigations are said to be related to possible sanctions violations and money laundering abuses related to Tether USD (USDT).
The report quoted anonymous sources as saying that US officials are investigating whether third parties have used USDT to finance activities related to drug trafficking, terrorism and cybercrime or to launder illicit proceeds.
Additionally, the newspaper claimed that the Treasury Department is reportedly weighing sanctions against Tether due to its high usage among sanctioned entities, including groups like Hamas and Russian arms dealers.
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