Tether CEO, Paolo Ardoino, has recently denied the reports of an ongoing federal probe in the US. He stated that the Wall Street Journal is simply repeating old information and that Tether is not currently under investigation in the US.
The Wall Street Journal had previously reported that federal prosecutors in Manhattan were looking into potential sanctions violations and money-laundering activities related to Tether USD (USDT). There were concerns that USDT may have been used by third parties to fund illegal activities such as drug trafficking, terrorism, and cybercrime, or to launder illicit funds. The Treasury Department was even considering imposing sanctions on Tether due to its use by sanctioned entities like Hamas and Russian arms dealers.
However, Tether has strongly refuted these claims and emphasized that they actively collaborate with US and international law enforcement to combat illicit activities. In fact, the company recently established an External Investigations Unit staffed with former law enforcement officials to assist in these efforts. They have worked with 180 agencies in 45 jurisdictions, frozen over 1,850 wallets linked to illegal activities, recovered nearly $114 million, and blocked $225 million associated with fraud.
Moreover, Tether has partnered with blockchain analytics firms like Chainalysis and TRM Labs to enhance their monitoring of transaction flows and ensure compliance with regulations. These measures are part of Tether’s commitment to maintaining transparency and integrity in the cryptocurrency space.
Overall, Tether remains steadfast in its dedication to working with law enforcement agencies and upholding the highest standards of compliance. The company’s proactive approach to addressing potential issues and collaborating with regulatory authorities demonstrates its commitment to combating illicit activities and maintaining trust within the crypto community.