The stablecoin operator has refuted the claims
July 26, 2021Image may be NSFW.
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The Justice Department is reportedly investigating possible bank fraud carried out by executives at stablecoin operator Tether Ltd.
The DOJ is looking into whether Tether covered up transactions linked to cryptocurrency from banks several years ago, Bloomberg reported, citing three sources familiar with the matter. If prosecutors find the executives guilty of the charges, it would likely have repercussions in the cryptocurrency market.
Tether is the third largest cryptocurrency by market cap, according to CoinDesk, with a value of $64 billion. The stablecoin is used by investors to move funds without needing to exchange cryptocurrency for fiat money, which saves users some time and money and provides some protection against the volatility of other cryptocurrencies.
Bloomberg said the DOJ has sent letters to the Tether executives whose past actions are being examined and that a decision on the investigation could be made soon. In a statement, Tether objected to the report, saying the claims are patently designed to generate clicks.
This article follows a pattern of repackaging stale claims as news. The continued efforts to discredit Tether will not change our determination to remain leaders in the community, the company said. Tether routinely has open dialogue with law enforcement agencies, including the U.S. Department of Justice, as part of our commitment to cooperation, transparency, and accountability, the company said.
