(Reuters) – Tether’s chief executive said on Friday the company had seen no indication it was under investigation, after the Wall Street Journal reported U.S. authorities were investigating potential violations of sanctions or anti-money laundering rules by the cryptocurrency company.
Federal investigators, led by the U.S. Attorney’s Office in Manhattan, are looking into whether the cryptocurrency was used by third parties to finance illegal activities such as drug trafficking, terrorism and hacking – or to launder the proceeds they generate, the WSJ found. citing anonymous sources.
is the world’s largest stablecoin, a type of cryptocurrency designed to maintain a constant value over time.
“There is no indication that Tether is under investigation,” Tether CEO Paolo Ardoino told X.
A spokesman for the U.S. attorney’s office declined to comment on the case.
According to a WSJ report, the Treasury Department is considering sanctions against Tether due to its widespread operate by sanctioned individuals and groups. The report shows that the crypto company has been under investigation for years for potential bank fraud by sponsors.
The Treasury Department’s Financial Crimes Enforcement Network did not immediately respond to requests for comment.
“The article… blithely ignores Tether’s well-documented and extensive contacts with law enforcement aimed at cracking down on bad actors attempting to abuse Tether and other cryptocurrencies,” Tether said in a statement about the WSJ report.
