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Tether Claps Back at Bloomberg for Raising “Years Old Allegations”

  • The Department of Justice is investigating whether banks were misled about crypto transactions. 
  • Tether says it’s committed to fully cooperating with law enforcement. 

There is a saying that it’s easier to kick a man when he is down, and Bloomberg is perhaps doing just that by releasing an article about Tether with no named citations. 

It might have been unintentional, but it has surely stirred the pot. 

The business information company has reported that U.S officials are investigating executives of stablecoin operator Tether for possible bank fraud. This probable criminal case could have severe implications for the cryptocurrency market.  

The main concern that has been raised is that Bloomberg had made these claims without citing those involved, saying “federal prosecutors are scrutinizing whether Tether concealed from banks that transactions were linked to crypto, said three people with direct knowledge of the matter who asked not to be named because the probe is confidential.” 

 Where There Is Smoke There Is Fire? 

The investigation by the Department of Justice centers around conduct from happened years ago, at which time Tether was still in its developing stages. Federal prosecutors suspect that Tether concealed information from banks about transactions linked to crypto. Yet, it is still unclear with what specific misconduct the DOJ is charging Tether. 

Tether clapped back at Bloomberg’s article in an official statement for publishing a piece based on “unnamed sources and years-old allegations […] to generate clicks.” Tether accused Bloomberg of engaging in a “pattern of repackaging stale claims as “news.”

In the end, the official statement concluded that efforts to discredit Tether ‘’will not change […] determination to remain leaders in the community,’’ and they are committed to full cooperation, transparency, and accountability with law enforcement agencies. 

Tether’s case would go down one of the most significant milestones in the U.S. government’s clampdown on virtual currencies if the company is charged with a criminal offense. 

Widely used, Tether is broadly utilized for trading Bitcoin. The token’s significance in the market is loud and clear. With $62 billion in circulation, it stands as a vital component of the crypto ecosystem. Tether also constitutes more than half of all Bitcoin trade. 

Coincidentally or not, Tether’s official website has been offline since the Department of Justice opened their investigation into its executives. 

On The Flipside

  • The DOJ’s probe into Tether is reaching a critical point.  
  • Stablecoins are receiving increasing scrutiny from regulators. The U.S. Treasury Department and Federal Reserve are among the agencies concerned with tokens threatening financial stability.  
  • Concealed transactions could potentially be connected to money laundering and other felonies. So far, hidden anonymity has allowed criminals to make payments without going through regulated banking systems.  
  • Even though the DOJ’s investigation into Tether is plausible, it is still unclear whether law enforcement will crackdown on one of the most powerful multi-billion players in the crypto scene.   

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    This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

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