BREAKING: U.S. Authorities are Investigating Tether

Federal authorities are allegedly intensively investigating Tether for possible breaches of U.S. sanctions and anti-money laundering laws, according to sources familiar with the case.

Prosecutors from the Manhattan U.S. Attorney’s office are allegedly focused on determining if Tether’s stablecoin has facilitated transactions for illicit activities—such as drug trafficking, terrorism, and cybercrime—or if it has been used to launder proceeds from these activities.

The U.S. Treasury Department is also weighing the possibility of imposing sanctions on Tether, according to a recent WSJ article. The Treasury is supposedly concerned about the stablecoin’s extensive use by individuals and entities on the U.S. sanctions list, including terrorist organizations like Hamas and sanctioned Russian arms dealers. Sanctions could prevent U.S. businesses and citizens from engaging with Tether.

Tether’s stablecoin, which is pegged to the U.S. dollar, has captured the attention of regulators for its appeal in regions with restricted access to U.S. currency. Unlike other cryptocurrencies, Tether maintains a consistent dollar value, making it a frequent choice for transactions in these areas.

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Handling over $190 billion in daily trading volume, Tether plays a crucial role in various financial networks that U.S. security agencies monitor closely. These concerns extend to North Korea’s nuclear program, Mexican drug cartels, Russian weapons distributors, Middle Eastern terrorist groups, and Chinese chemical manufacturers involved in producing fentanyl.

This story is still developing and is yet to be confirmed and facts are yet to be confirmed…

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.