CandleFocus

Tether Faces Federal Criminal Investigation, What's The Reason?

Author: Content Editor
U.S. federal authorities are investigating crypto company Tether for potential violations of sanctions and anti-money laundering regulations. The investigation is examining whether Tether's digital currency, USDT, has been used to facilitate unlawful transactions by third parties, including financing illicit activities such as drug trafficking and terrorism. The Treasury Department is also considering sanctions against Tether, which would prohibit U.S. citizens and entities from transacting with the company. USDT's widespread use by individuals and organizations subject to U.S. sanctions has raised concerns. Tether denies the allegations and states that it actively collaborates with law enforcement to combat illicit activity. The ongoing probe could also have implications for Tether's partners, including brokerage firm Cantor Fitzgerald. Tether has taken measures to enhance monitoring and has frozen crypto wallets and retrieved assets. However, legal scrutiny is expected to continue.

Related News