Tether has firmly rejected claims that it is being investigated by the US government for potential anti-money laundering violations, following a report from the Wall Street Journal (WSJ) that cited unnamed sources.
The article suggested that federal investigators in Manhattan were looking into whether Tether had been misused by individuals involved in illegal activities. Tether responded by labeling these allegations as “pure speculation,” emphasizing that there were no credible sources or official confirmations to support such claims.
A spokesperson for Tether criticized the WSJ for what they deemed “reckless allegations,” arguing that it was irresponsible to publish such serious accusations without any formal backing from authorities. Tether maintains that it is unaware of any investigation against the company.
This report comes on the heels of a campaign by the conservative nonprofit Consumers’ Research, which has accused Tether of being associated with “the world’s worst actors.”
Will Hild, the executive director of the organization, stated that the WSJ article highlights the urgent need for Tether to undergo an independent audit to verify its operations. He expressed concerns about Tether’s connections to questionable entities and its reluctance to accept stricter oversight.
Tether’s CEO, Paolo Ardoino, reassured the public about the company’s financial stability, revealing that Tether holds approximately $100 billion in US Treasuries, 82,000 bitcoins, and 48 tons of gold, which back its USDT stablecoin.
Importantly, the WSJ report did not accuse Tether of misrepresenting its reserves or breaking any laws regarding asset backing. In 2021, Tether had settled with the Commodity Futures Trading Commission (CFTC) for $42.5 million over previous claims about the backing of USDT.
