Tether‘s CEO Paolo Ardoino has refuted recent claims from the Wall Street Journal (WSJ) suggesting the U.S. Department of Justice (DOJ) is investigating the company for alleged money laundering activities. Ardoino described the report as “old noise” and emphasized that Tether, the world’s largest stablecoin issuer, maintains an active, cooperative relationship with law enforcement agencies.
Allegations of Money Laundering and Terror Financing
The WSJ article, released on Friday, claimed the DOJ was scrutinizing Tether’s operations due to potential links to money laundering and possible funding of terrorist organizations. The report referenced concerns over the usage of Tether’s USDT stablecoin, which allegedly includes transactions with groups like Hamas. Tether responded, labelling the report as “irresponsible,” asserting that it was based on speculation.
As we told to WSJ there is no indication that Tether is under investigation. WSJ is regurgitating old noise. Full stop.
— Paolo Ardoino 🤖🍐 (@paoloardoino) October 25, 2024
In its rebuttal, Tether reiterated its commitment to security, pointing to a history of collaborating with global law enforcement and regulatory bodies. The company emphasized its transparency, noting regular updates in its periodic reports. Tether’s newly launched T3 Financial Crime Unit (FCU) was highlighted, showcasing its recent success in seizing $12 million in illicit funds.
Market Reacts to Investigation Rumours
News of the alleged DOJ probe led to a temporary drop in the crypto market, with Bitcoin’s price falling to $66,000 before rebounding to $67,000. Other major tokens, such as Ethereum and Solana, also saw brief declines. The market volatility resulted in over $390 million in liquidations, particularly affecting Bitcoin, Ethereum, and Solana traders.
Tether Stands Firm Against “Reckless Allegations”
Tether emphasized that the WSJ report was based on “reckless allegations” without substantial evidence. In contrast, it cited its record of compliance with regulatory authorities and commitment to financial security within the crypto ecosystem, which remains under ongoing scrutiny.
