Thomas Daniels
Tether CEO Paolo Ardoino refuted recent reports of a U.S. investigation into Tether, the world’s largest stablecoin issuer, over possible breaches of anti-money-laundering (AML) and sanctions regulations.
The alleged probe, led by Manhattan federal prosecutors, seeks to determine whether Tether’s USDT stablecoin was used to support illegal activities such as money laundering, drug trafficking, or terrorism financing, according to The Wall Street Journal. Simultaneously, the U.S. Treasury Department is reportedly evaluating sanctions that could bar Americans from engaging with Tether. This measure follows allegations that Tether’s currency facilitated transactions by sanctioned individuals, including Russian arms dealers and groups such as Hamas.
Ardoino responded decisively on X (formerly Twitter), dismissing the WSJ report: “As we told WSJ, there is no indication that Tether is under investigation. WSJ is regurgitating old noise. Full stop.”
Tether has previously faced scrutiny over its lack of transparency. A recent Consumers’ Research report criticized the company’s incomplete audits of its dollar reserves, highlighting potential risks similar to those that led to FTX’s collapse. The report also questioned Tether’s alleged involvement in sanction evasions, particularly in countries like Venezuela and Russia.
Despite these claims, Tether remains the most-traded cryptocurrency worldwide, with daily trading volumes reaching approximately $190 billion. Its status as a stablecoin—pegged to the U.S. dollar—enhances its appeal in regions where access to dollars is restricted. Tether has consistently denied any connection to illicit activities and has collaborated with transaction-monitoring firms to mitigate misuse of its currency.
