New legal trouble for Tether?

According to a report by the Wall Street Journal, US authorities are investigating possible violations by Tether regarding sanctions and anti-money laundering regulations.

Last Friday reported the Wall Street Journal that U.S. authorities are investigating possible violations by Tether of money laundering and sanctions laws. This news caused a negative price reaction in the crypto market, although it has since recovered.

Paolo Ardoino, CEO of Tether, quickly responded, "As we told the Wall Street Journal, there is no indication that Tether is under investigation. The WSJ is heating up old rumors." Financial expert Grant Williams responded, "'There is no indication that an investigation is underway' is not quite the same as 'no investigation is underway,' is it, Paolo? I'm sure you choose your words carefully, but could you clarify this for us?"

In another post on X, Ardoino denied, "At Tether, we work regularly and directly with law enforcement to prevent hostile states, terrorists and criminals from abusing USDT. We would know if we were under investigation, as the article falsely claims. Therefore, we can confirm that the claims in the article are clearly false."

The Wall Street Journal reported that U.S. authorities are investigating whether third parties have used the crypto currency USDT to finance illegal activities such as drug trafficking, terrorism and hacking.

The stablecoin fell briefly to about $0.9975, but quickly recovered to $0.9988.

At the Plan B forum in Lugano, Ardoino also showed the company's BTC reserves, which total 82,454 BTC - in addition, the company also owns 48.3 tons of gold. Recently, USDT reached a new record with a market capitalization of USD 120 billion.