The sulphurous reputation of Tether (USDT) is not ready to dissipate… Executives of the company are targeted by an investigation, re-examined recently according to new information. What do we blame the issuer of the largest stablecoin?
Tether: investigation transferred and suspicions of fraud
According to Bloomberg, which reports the news, prosecutors in Washington had been looking into Tether as early as last year. They were investigating on a possible fraud of the company, which would have deceived the banks in order to proceed with the movement of funds. There had been no news since, but the investigation has just aroused the interest of the investigators again.
The case has indeed been transferred internally, and it is the prosecutor Damian Williams who will now take care of it. The man is known to pursue criminal cases related to cryptocurrencys. Recently, his office led a payment processor executive to plead guilty in another case.
This transfer shows that the actors of the Department of Justice are still limited in their consideration of the crypto ecosystem: the transition to a new prosecutor could therefore make it possible to better investigate. These are several executives of the company who would be targeted.
👉 To go further – What are stablecoins?
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Tether denies any progress in the investigation
Tether reportedly called the news “dated and not factual.” An official press release specifies that the company nhaven’t had any contact with the Justice Department lately :
“The Justice Department does not appear to be actively investigating Tether. […] We continue to lead the market in terms of transparency.»
Would there be smoke without fire? This is rare, especially in the world of cryptocurrencies. What is certain is that the facts date. The prosecutor could blame Tether of having opened bank accounts under false pretensesat a time when it was more difficult for crypto companies to gain access to the banking system.
👉 More info on how Tether and its stablecoin USDT work
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Tether continues to show its credentials
However, we cannot deny that Tether has shown a certain desire to do things according to the rules of the art, after a few lawsuits and a reputation that is still very sulphurous. This summer, the company announced that it would henceforth publish monthly audits – and more quarterly. In addition, it no longer holds any commercial paper shares in the reserves that it uses to back the USDT.
Tether is in flux, but legal cases are lagging behind. Will she be caught? That remains to be seen. In any case, its status as “queen of stablecoins” does not seem to be threatened for the moment. Its USDT is currently worth over $70 billionand widened the gap with its immediate competitor the USDC.
👉 On the same subject – Will Tether widen the gap between its USDT and Circle’s USDC again?
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Source: Bloomberg
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Journalist at Cryptoast, I fell into the pot of cryptocurrencies a few years ago. I am passionate about the innovative technologies that stem from the blockchain and I like to find the most crispy information to share with you.
Marine Debelloir
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