Tether CEO says he sees no indication of US probe

(Reuters) -Tether’s prime govt mentioned on Friday the corporate has seen no signal it’s beneath investigation, after the Wall Road Journal reported U.S. authorities are probing potential violations by the cryptocurrency agency of sanctions or anti-money laundering guidelines.

Federal investigators, led by the U.S. Legal professional’s Workplace in Manhattan, are scrutinizing whether or not the cryptocurrency has been utilized by third events to fund unlawful actions such because the drug commerce, terrorism and hacking – or to launder the proceeds generated by them, the WSJ mentioned, citing unnamed sources.

is the world’s largest stablecoin, a kind of cryptocurrency designed to carry a set worth over time.

“There is no such thing as a indication that Tether is beneath investigation,” Tether CEO Paolo Ardoino mentioned on X.

A spokesperson for the U.S. legal professional’s workplace declined to remark.

The Treasury Division has been weighing sanctions on Tether due to widespread use by sanctioned people and teams, the WSJ report mentioned. The crypto agency has been beneath investigation for years in reference to potential financial institution fraud by backers, the report mentioned.

The Treasury Division’s Monetary Crimes Enforcement Community didn’t reply instantly to requests for remark.

“The article … carelessly glosses over Tether’s well-documented and intensive dealings with regulation enforcement to crack down on unhealthy actors in search of to misuse tether and different cryptocurrencies,” Tether mentioned in a press release concerning the WSJ report.