• This inquiry is being spearheaded by the US Attorney’s office in Manhattan.
  • Tether is being investigated by the US Treasury Department for possible sanctions.

Allegedly, the USDT stablecoin issuer is the subject of an investigation by the US Department of Justice (DOJ) investigating possible breaches of anti-money laundering regulations. This is happening shortly after Tether CEO Paolo Ardoino demanded consistent crypto rules across the nation.

A US government investigation into Tether into potential sanctions and anti-money laundering regulation violations has surfaced, according to the Wall Street Journal (WSJ). The criminal inquiry is also trying to figure out whether anyone else has laundered or utilized USDT to finance illicit operations. Including hacking, drug trafficking, or terrorism.

This inquiry is being spearheaded by the US Attorney’s office in Manhattan. According to the Wall Street Journal, Tether is being investigated by the US Treasury Department. For possible sanctions and fines related to its dealings with entities and persons that are included on the US sanctions list. American citizens may be unable to use USDT for financial transactions if the US Treasury were to impose a sanction.

Tether CEO Refutes

In response to the WSJ report, Tether CEO Paolo Ardoino said in an X post that the company has previously informed the WSJ that the cryptocurrency business is not being investigated.

Nonetheless, the potential effects of this event on Tether and the cryptocurrency market as a whole are cause for alarm. Due to its widespread use in the crypto market and its status as the biggest stablecoin by market size. USDT has the potential to set off a chain reaction.

In addition, the cryptocurrency market may react with fear. As it did when the US authorities levied charges of money laundering against Binance and its former CEO Changpeng Zhao.

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