BCGAME - Free 5BTC Daily Bonus!- Tether denies AML investigation
- Company strengthens legal cooperation and reservation security
- Hiring aims to strengthen regulatory relations
Tether has vehemently denied allegations that it is under investigation by the US government for possible violations of anti-money laundering (AML) regulations, according to a report published by the The Wall Street Journal reported last week that federal investigators in Manhattan were examining whether Tether was used by illicit actors to fuel illegal activity, citing unnamed sources. However, Tether dismissed these allegations as “pure speculation,” with no named sources or official statements to back them up.
In response, a Tether spokesperson criticized the newspaper for making “reckless allegations,” saying it was “extremely irresponsible” to publish such accusations without any formal confirmation from authorities. Tether said it was not aware of any investigation targeting the company.
The WSJ article comes on the heels of a campaign by the conservative nonprofit Consumers' Research, which accused Tether of being used by “the world’s worst actors.” Will Hild, CEO of Consumers' Research, commented on the article, highlighting the need for Tether to undergo an audit by a reputable third party to confirm the legitimacy of its operations. Hild warned consumers about Tether’s connections to questionable actors, suggesting that the company’s resistance to stricter oversight raises concerns.
Tether CEO Paolo Ardoino assured the public that Tether’s reserves remain robust. He reported that the company holds around $100 billion in U.S. Treasury bonds, 82.000 bitcoins, and 48 tons of gold, emphasizing the security of its USDT backing. Notably, the WSJ article did not accuse Tether of misrepresenting its reserves, nor did it claim that Tether violated any laws related to asset backing. In 2021, Tether reached a settlement with the Commodity Futures Trading Commission (CFTC), paying $42,5 million over previous claims that USDT was entirely backed by U.S. dollars.
Ardoino also highlighted Tether’s long-standing cooperation with authorities in the fight against fraud, stating that the company has “voluntarily blocked” nearly 2.000 wallets linked to suspected illegal activity.
