search
Homeweb3.0Tether CEO Paolo Ardoino took to social media to deny a report the company is facing a criminal investigation over allegations its cryptocurrency is popular with drug traffickers and terrorists.

Federal prosecutors in Manhattan are investigating the use of Tether's eponymous stablecoin in the financing of drug trafficking, terrorism, and hacking

Tether CEO Paolo Ardoino took to social media to deny a report the company is facing a criminal investigation over allegations its cryptocurrency is popular with drug traffickers and terrorists.

Tether CEO Paolo Ardoino has denied a report that the company is facing a criminal investigation over allegations its cryptocurrency is popular with drug traffickers and terrorists.

“As we told to [Wall Street Journal] there is no indication that Tether is under investigation,” he wrote on X Friday afternoon. “WSJ is regurgitating old noise. Full stop.”

Federal prosecutors in Manhattan are investigating the use of Tether’s eponymous stablecoin in the financing of drug trafficking, terrorism, and hacking, The Wall Street Journal reported Friday.

At the same time, the US Treasury Department is considering sanctioning the company over sanctioned entities’ use of its cryptocurrency, according to the report.

“It is wildly irresponsible for WSJ to write articles with reckless allegations with such certainty when no authorities have gone on the record to confirm these rumors, and no sources are named,” Tether said in a statement. “These stories are based on pure rank speculation despite Tether confirming that it has no knowledge of any such investigations into the company.”

The report sent crypto prices plunging. As of 3 pm New York time, Bitcoin, Ethereum, and Solana had fallen 2.7%, 3.5% and 4.5%, respectively, from their Friday highs.

Tether fluctuated wildly in the moment after the Journal published its report, first dropping as low at 99.3 cents before rebounding to $1.01, according to CoinGecko.

Tether is the world’s largest stablecoin, with almost $120 billion in circulation Friday, according to DefiLlama data.

That accounts for almost 70% of the supply of all stablecoins. Its next closest competitor, Circle’s USD Coin, had a market capitalisation of $34 billion Friday.

Stablecoins are cryptocurrencies pegged to other assets, most often US dollars. They are meant to offer crypto investors and traders refuge from the sector’s volatility while allowing them to keep their wealth on the blockchain.

Across every major cryptocurrency exchange, Tether is the most traded cryptocurrency against Bitcoin, Ethereum, and Solana.

Stablecoins are also touted as a safe asset in economies experiencing severe inflation and a cheaper, faster way to move money between borders.

Tether has long faced intense scrutiny, given its dominant position in the stablecoin market.

In 2021, the company paid fines of almost $60 million after settling with the New York Attorney General’s Office and the Commodity Futures Trading Commission. Both alleged Tether’s stablecoin wasn’t fully backed by cash or cash equivalents. Tether did not admit wrongdoing in connection with the former and, regarding the latter case, said it always had adequate reserves — just not necessarily in cash.

Tether has also failed to produce audits that could reassure users who worry its stablecoin isn’t fully or safely collateralized. A lack of adequate collateral could leave some Tether holders empty-handed in the event too many rush to cash out at the same time — a fear that has yet to materialise.

In an interview with DL News in April, Ardoino said the Big Four accounting firms — Deloitte, PwC, EY, and KPMG — are afraid to work with Tether because they fear it will damage their reputations.

That fear stems in part from Tether’s controversial role in the world economy.

When the US hit Venezuela’s state-run oil producer with a new round of sanctions in April, the company turned to the Tether stablecoin.

Tether quickly said it would freeze wallets linked to any entity that tried to evade sanctions.

TRM Labs, a crypto-sleuthing company, called USDT the “currency of choice” for terrorism financing. And a Chainalysis report showed that stablecoins, including Tether, make up roughly 60% of illicit crypto transactions.

Tether, for its part, has been proactive in freezing wallets associated with criminal activity.

In September, it seized over $6 million tied to a Southeast Asian crypto-confidence scheme.

The Wall Street Journal’s reporting “carelessly glosses over Tether’s well-documented and extensive dealings with law enforcement to crack down on bad actors seeking to misuse tether and other cryptocurrencies,” Tether said in its statement.

The above is the detailed content of Tether CEO Paolo Ardoino took to social media to deny a report the company is facing a criminal investigation over allegations its cryptocurrency is popular with drug traffickers and terrorists.. For more information, please follow other related articles on the PHP Chinese website!

Statement
The content of this article is voluntarily contributed by netizens, and the copyright belongs to the original author. This site does not assume corresponding legal responsibility. If you find any content suspected of plagiarism or infringement, please contact admin@php.cn
Tokenized Treasuries Near $6B Milestone, Led by BlackRockTokenized Treasuries Near $6B Milestone, Led by BlackRockApr 19, 2025 am 11:44 AM

The value of blockchain-based U.S. Treasuries is closing in on a new milestone, with total holdings approaching $6 billion.

title: Canary Capital Is Launching a TRX-Tracking ETFtitle: Canary Capital Is Launching a TRX-Tracking ETFApr 19, 2025 am 11:42 AM

Canary Capital is looking to launch an exchange-traded fund (ETF) tracking the price of Tron's native token, TRX, according to a filing.

Solana Stablecoin Market Cap Hits Record $12.73 Billion as Sui Supply Reaches $800M with $60M InflowsSolana Stablecoin Market Cap Hits Record $12.73 Billion as Sui Supply Reaches $800M with $60M InflowsApr 19, 2025 am 11:40 AM

The stablecoin market has surpassed a total capitalization of $233 billion. Within this sector, Solana's stablecoins have reached a new all-time high market capitalization of $12.73 billion

Canary Capital Files for Staking TRX ETF, Targeting Launch Before Spot Bitcoin ETFsCanary Capital Files for Staking TRX ETF, Targeting Launch Before Spot Bitcoin ETFsApr 19, 2025 am 11:38 AM

Canary Capital is looking to get the U.S. Securities and Exchange Commission's sign-off for an exchange-traded fund that would track the Tron token TRX and has a staking component.

MoonPay CEO Ivan Soto-Wright calls on US lawmakers to leave a path open to state-level regulators when passing legislation on stablecoinsMoonPay CEO Ivan Soto-Wright calls on US lawmakers to leave a path open to state-level regulators when passing legislation on stablecoinsApr 19, 2025 am 11:36 AM

In an April 18 X post, Soto-Wright said he wanted Congress to “keep state-regulated issuers in the game” when it comes to stablecoin regulation, referencing efforts in the House of Representatives and Senate to create a federal regulatory framework.

Michael Saylor Dissects the Philosophy and Technological Potential of Bitcoin in '21 Truths of Bitcoin'Michael Saylor Dissects the Philosophy and Technological Potential of Bitcoin in '21 Truths of Bitcoin'Apr 19, 2025 am 11:34 AM

Saylor's ideas centre on the fixed 21 million coin supply of Bitcoin. He presents this shortage as a revolutionary economic idea rather than only a technical one.

Official Trump (TRUMP) memecoin unlocked 40 million tokens, worth around $300 millionOfficial Trump (TRUMP) memecoin unlocked 40 million tokens, worth around $300 millionApr 19, 2025 am 11:32 AM

The TRUMP memecoin has gained significant popularity on the Solana network primarily due to its direct affiliation with the U.S. President Donald Trump.

TRUMP (TRUMP) memecoin unlocks 40 million tokens, worth around $300 millionTRUMP (TRUMP) memecoin unlocks 40 million tokens, worth around $300 millionApr 19, 2025 am 11:30 AM

The TRUMP memecoin has gained significant popularity on the Solana network primarily due to its direct affiliation with the U.S. President Donald Trump.

Hot AI Tools

Undresser.AI Undress

Undresser.AI Undress

AI-powered app for creating realistic nude photos

AI Clothes Remover

AI Clothes Remover

Online AI tool for removing clothes from photos.

Undress AI Tool

Undress AI Tool

Undress images for free

Clothoff.io

Clothoff.io

AI clothes remover

AI Hentai Generator

AI Hentai Generator

Generate AI Hentai for free.

Hot Tools

Notepad++7.3.1

Notepad++7.3.1

Easy-to-use and free code editor

SublimeText3 Mac version

SublimeText3 Mac version

God-level code editing software (SublimeText3)

Dreamweaver Mac version

Dreamweaver Mac version

Visual web development tools

WebStorm Mac version

WebStorm Mac version

Useful JavaScript development tools

Zend Studio 13.0.1

Zend Studio 13.0.1

Powerful PHP integrated development environment