Tether Under Federal Investigation for Alleged Crimes

The U.S. federal government is investigating Tether, a leading stablecoin issuer, for potential violations of sanctions and anti-money laundering laws, particularly concerning its alleged use in financing illegal activities such as drug trafficking and terrorism. The inquiry, reported by The Wall Street Journal, is being led by the U.S. Attorney’s Office for the Southern District of New York and has reportedly been ongoing for several years. Tether's CEO, Paolo Ardoino, has denied the allegations, labeling them as 'old noise' and criticizing the media coverage as reckless. With a daily trading volume of approximately $190 billion, Tether plays a significant role in the crypto ecosystem, yet it faces scrutiny due to concerns about its regulatory practices and links to criminal networks. The investigation has already impacted the cryptocurrency market, causing notable declines in Bitcoin and Ethereum prices. If the U.S. Treasury imposes sanctions, it could further restrict American transactions with Tether, complicating its operations in the global financial landscape.