Tether condemns Wall Street Journal investigative report

Cryptocurrency companies Connection condemned a report The Wall Street Journal (WSJ) published on Friday (October 25) that federal authorities are investigating the company for possible violations of sanctions and anti-money laundering (AML) regulations.

The WSJ report cited unnamed sources.

“These stories are based on pure rank speculation, although Tether has confirmed this has no knowledge of it no such investigations against the company,” Tether said in a opinion posted on his website. “The article also carelessly glosses over Tether’s well-documented and extensive dealings with law enforcement to crack down on malicious actors seeking to abuse Tether and other cryptocurrencies.”

The WSJ reported that prosecutors from the Manhattan U.S. Attorney’s Office are investigating whether Tether’s cryptocurrency was used by third parties to finance illegal activities or launder the proceeds of such activities.

It was also reported that the Department of the Ministry of Finance has considered sanctioning the company because its cryptocurrency was used by individuals and groups that the U.S. has sanctioned Ministry of Justice An investigation into Tether began a few years ago.

Neither the Treasury Department nor the Justice Department immediately responded to PYMNTS’ request for comment sent outside normal business hours.

The WSJ article also states that the publication previously reported that Tether cryptocurrency is being used by the North Korean nuclear weapons program, Mexican drug cartels, Russian defense contractors, Middle Eastern terrorist groups, and Chinese chemical manufacturers to produce fentanyl.

Tether CEO Paolo Ardoino wrote on a Friday post on the social platform X: “As we told the WSJ, there is no evidence that Tether is under investigation. WSJ revives old noise. Point.”

As we told the WSJ, there is no evidence that Tether is under investigation. WSJ revives old noise. Point.

— Paolo Ardoino ?? (@paoloardoino) October 25, 2024

On another Friday post Ardoino wrote down

“On this basis, we can confirm that the allegations in the article are clearly false,” Ardoino wrote.

At Tether, we work regularly and directly with law enforcement to prevent rogue states, terrorists and criminals from misusing USDt. We would know if we were under investigation as the article falsely claims. Based on this, we can confirm that the allegations in…

— Paolo Ardoino ?? (@paoloardoino) October 25, 2024

Tether (USDT) is the largest Stablecoin by market capitalizationbut it is primarily used as a trading pair on exchanges for liquidity and stability, and its regulatory status may make companies hesitant to fully adopt it across their operations, PYMNTS reported on Monday (Oct. 21).