Tether Defends Its Record, Blasts WSJ For ‘Irresponsible Reporting’

In a recent report by the Wall Street Journal (WSJ), it was alleged that Tether is currently under federal investigation for potential violations related to sanctions and anti-money laundering (AML) regulations in the US. 

The inquiry, reportedly led by prosecutors from the Manhattan US Attorney’s Office, is said to focus on whether Tether’s stablecoin, USDT, has been used by third parties to finance illegal activities such as drug trafficking, terrorism, and hacking, or to launder the proceeds from these activities.

Tether CEO Denies Investigation Claims

In response to these serious allegations, Tether has issued a statement strongly criticizing the WSJ’s reporting. The company called the article “wildly irresponsible,” asserting that it is inappropriate for the WSJ to publish such definitive claims without verified sources or corroboration from authorities. 

The stablecoin issuer also emphasized that it has no knowledge of any ongoing investigations, characterizing the report as based on “pure rank speculation.”

Tether’s CEO, Paolo Ardoino, also took to social media platform X (formerly Twitter) to further address the issue, stating, “As we told to WSJ, there is no indication that Tether is under investigation. WSJ is regurgitating old noise. Full stop.” 

This response underlines the company’s commitment to transparency in the face of these allegations and the increased scrutiny it has faced in recent years, not only from the US authorities but also from news outlets such as the WSJ, and its stance against what it considers to be unfounded allegations.

Commitment To Combating Cryptocurrency Misuse

The article from the WSJ also reportedly downplays Tether’s extensive collaborations with law enforcement agencies aimed at combating illicit activities involving cryptocurrencies. 

Tether highlighted its proactive measures to work with the authorities to ensure that its platform is not misused by bad actors. Their response concluded:

The article also carelessly glosses over Tether’s well-documented and extensive dealings with law enforcement to crack down on bad actors seeking to misuse tether and other cryptocurrencies.

Featured image from DALL-E, chart from CoinPrice.Watch