Tether Denies Wall Street Journal Report on Alleged Fraudulent Activity
Tether, the issuer of one of the most popular stablecoins, has denied allegations made in a Wall Street Journal article claiming that the company was involved in fraudulent activities. The report suggested that Tether and a related crypto broker had obscured identities, and that false documents were signed by Tether’s owner, Stephen Moore.
According to the report, a major China-based Tether trader used false invoices and contacts to obtain bank accounts after being restricted from the global banking system. The report claimed that Moore advised the other party to halt those actions and expressed concerns about the risk of using false documents.
In response to the allegations, Tether issued a statement on March 3, calling the article “wholly inaccurate and misleading.” The company did not address the specific claims made in the article but stated that Bitfinex and Tether have world-class compliance programs and adhere to applicable Anti-Money Laundering, Know Your Customer, and Counter-Terrorist Financing legal requirements.
Tether added that it is a proud partner of global law enforcement and routinely assists the United States Department of Justice and other law enforcement organizations across the world in preventing money laundering, terrorism, and other crimes by bad actors. The company stated that these unfair attacks will not distract it from continuing with its efforts and offering the most liquid and reliable stablecoin experience, which the market has recognized by making it the leader in the industry.
The allegations against Tether come at a time when stablecoins have come under scrutiny from regulators around the world. Several countries, including the US and the UK, have expressed concerns over stablecoins’ potential risks to financial stability and investor protection. Tether, which claims to be backed by US dollars, has faced scrutiny over its reserves and transparency.
The Wall Street Journal report is likely to increase scrutiny on Tether and the broader stablecoin market. However, Tether’s denial of the allegations suggests that it is prepared to defend itself against any allegations of fraudulent activity. The ongoing debate over the regulation of stablecoins is likely to continue, with regulators and industry participants seeking to strike a balance between innovation and financial stability.
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