Tether executives may face charges from the DOJ for possible Bank fraud.
The US Department of Justice is reportedly planning to investigate Tether’s top executives for a probable bank fraud that occurred years ago.
- The Department of Justice investigation into Tether’s case dates back to an unspecified number of years
- Tether is the administrator of USDT, the crypto market’s largest stable coin, and has been suspected of having questionable financial ties for a long time.
- The investigation into Tether could lead to tighter regulatory monitoring of stable coins and increased transparency in how digital assets are backed, exchanged, and traded.
Crypto company, Tether’s top executives have been charged with a possible criminal offense that extends back to the company’s early days, according to the Department of Justice (DOJ). Tether is the administrator of USDT, the crypto market’s largest stable coin with an approximate market capital surpassing $62.3 billion.
Recall that the New York Attorney General’s Office (NYAG) recently concluded an inquiry into whether Tether and its sister exchange, Bitfinex, were covering up the loss of over $1 billion in customer funds earlier this year.
However, the new DOJ investigation (as cited in a Bloomberg report) follows the crypto company’s activities since its inception, with a focus on allegations that it misled banks by failing to disclose that transactions were tied to cryptocurrency.
According to various sources, federal prosecutors have addressed letters to some of the individuals involved in the alleged criminal offense, informing them that they are targets of the ongoing investigation and that a decision on the case could be made soon.
Tether maintains cool, claims “business as usual”
Refuting all possible claims of fraud, Tether addressed CNBC in an email statement that it’s “business as usual” at the company and that it’s determined “to remain leaders in the community.”
In adding more clarification, Tether addressed the news house further in the email stating that it has often engaged law enforcement agency including DOJ as part of the company’s “commitment to cooperation, transparency, and accountability.”
“We are proud of our role as industry leaders in promoting cooperation between industry and government authorities in the U.S. and around the world. We remain committed to our customers and the industry-leading technology and transparency that has led to our growth,” Tether’s statement reads further.
Finally, Tether has been mired in controversy since its introduction in 2014, and the latest investigation’s findings could lead to tighter regulation of stablecoins, depending on the outcome.
According to Jesse Proudman, co-founder of crypto Robo-advisor Makara Digital, Regulators will now, more than ever, focus on transparency in how digital assets are backed, exchanged, and traded.