Tether Not Under Investigation: CEO Denies Rumors of US Investigation
Date: 2024-10-28 Author: Oliver Abernathy Categories: BUSINESS
The Wall Street Journal reported that Manhattan prosecutors are investigating Tether for money laundering. Allegedly, some third parties used the Tether platform for illegal activities, including drug trafficking, terrorist financing, and hiding proceeds from cybercrime.
Market Reaction to the Wall Street Journal Reports
After the publication of the WSJ article, Ardoino issued a statement that there is no evidence of a federal investigation into Tether. Journalists, according to him, are trying to reignite interest in old topics. “As we have already reported to the WSJ, there is no evidence of an investigation into Tether. This is just a repetition of old rumors,” he emphasized.
Shortly after the WSJ publication, the Bitcoin price, which was hovering around $70,000, suddenly dropped from $67,000 to $65,000, causing a temporary panic in the cryptocurrency market. However, Ardoino’s statement that there was no investigation helped stabilize the situation and partially restore prices.
Ongoing Speculation Around Tether and Its Impact on the Market
Tether has been under intense scrutiny from critics and regulators in recent months. In September, Consumers’ Research published a report criticizing the company for not fully auditing its dollar reserves, which raised additional suspicions.
In addition, Consumers’ Research expressed concerns that Tether may be able to circumvent international sanctions, especially against countries such as Venezuela and Russia. The report also draws parallels with the bankrupt FTX exchange, which only heightened concerns about Tether’s transparency and regulatory compliance.
Despite the criticism, Tether is actively working on new developments. The company is expected to enter the commodity market next year, offering new financial products. The move is expected to help companies struggling with credit, which could strengthen Tether's position in the market and ease regulatory pressure.
