Tether CEO Paolo Ardoino Denies Investigation Reports

Tether CEO Paolo Ardoino has denied recent reports suggesting that the major cryptocurrency company is under investigation for potential violations of anti-money-laundering and sanctions laws. The alleged investigation, said to be led by Manhattan prosecutors, focuses on whether Tether’s cryptocurrency has been used to fund illegal activities such as drug trafficking or terrorism, or to launder money from these activities.

According to reports, the U.S. Treasury Department is also considering imposing sanctions on Tether. Such sanctions could prevent Americans from conducting business with the company due to its cryptocurrency allegedly being used by sanctioned individuals and groups, including Russian arms dealers and the terrorist group Hamas.

Paolo Ardoino, Tether’s CEO, vehemently denied these claims, stating, “As we told WSJ, there is no indication that Tether is under investigation. WSJ is regurgitating old noise. Full stop.”

Past Criticisms of Tether

In September, a report from Consumers’ Research criticized Tether, the issuer of the USDT stablecoin, for its lack of transparency and failure to conduct a full audit of its dollar reserves, despite promises dating back to 2017. The report likened Tether’s operations to those of the collapsed FTX and raised concerns over its alleged use in circumventing international sanctions, particularly in countries like Venezuela and Russia.

Tether’s cryptocurrency, known as a stablecoin, is tied to the value of the U.S. dollar, unlike more volatile cryptocurrencies like Bitcoin. This stability makes Tether popular in regions where access to the U.S. dollar is restricted or banned. As much as $190 billion worth of Tether is traded globally each day, making it the most widely used cryptocurrency in the world.

Measures to Prevent Misuse

While Tether has denied any involvement in illegal activities, the company has taken steps to prevent the misuse of its currency. These measures include partnering with firms that track transactions. Such collaborations aim to enhance the transparency and security of Tether’s operations, ensuring its stablecoin is used responsibly.

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