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Sujit Kumar
Oct 26, 2024
by Sujit Kumar

Tether’s CEO Denies Money Laundering Claims Amid Market Volatility

Paolo Ardoino

Table of contents

  1. Tether’s Ongoing Transparency Issues
  2. Future Plans Amid Increased Scrutiny
In response to a Wall Street Journal report alleging that U.S. federal authorities are investigating Tether for potential money laundering, Tether CEO Paolo Ardoino has denied any knowledge of a federal probe. The WSJ report, citing anonymous sources, claimed that the U.S. Attorney’s Office in Manhattan is investigating whether third parties used Tether’s stablecoin platform for illicit activities, including drug trafficking and terrorism financing.

Report Claims Potential Links to Sanctioned Entities

The WSJ report suggested that investigators are examining if Tether indirectly facilitated transactions for sanctioned entities, including alleged Russian arms dealers and other groups. Although no charges have been filed, the report has sparked renewed scrutiny of Tether's role in the cryptocurrency ecosystem.

Market Impact of WSJ Report and Ardoino’s Response

The WSJ report triggered volatility in the crypto market, briefly causing Bitcoin’s price to drop from $67,000 to $65,000. Ardoino’s swift denial helped stabilize prices, with Bitcoin rebounding to around $66,700.

Tether’s Ongoing Transparency Issues

Tether has faced criticism over its financial practices. Recently, consumer advocacy group Consumers’ Research condemned Tether for failing to conduct a comprehensive audit of its dollar reserves, a commitment made in 2017. The organization raised concerns about Tether’s potential involvement in bypassing international sanctions in countries like Venezuela and Russia, comparing Tether’s practices to those of FTX.

Future Plans Amid Increased Scrutiny

Despite regulatory pressures, Tether is reportedly considering expansion into the commodity sector, eyeing opportunities to support credit-limited businesses. This strategic shift could bolster Tether's market position, even as the stablecoin issuer faces mounting regulatory challenges.

Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
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Tether’s CEO Denies Money Laundering Claims Amid Market Volatility
Sujit Kumar
Sujit received his Bachelors in Science from the LNMU Darbhanga. He is currently working as a Content Strategist. He has more than three years of professional experience in information systems, security policies, technologies, and Cryptocurrency. He has published 6 books in the area of information security and assurance. He has published more than 50 research articles in leading journals Regarding the Latest and Breaking Crypto News and updates. His research interests include access control, computer forensics, Digital Marketing, Web development, business hacks, player experience, and virtual storytelling.

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