Tether’s CEO, Paolo Ardoino, refuted claims by the Wall Street Journal that US federal authorities are investigating the company for potential money laundering. 

The WSJ published an exclusive report earlier today claiming the U.S. Attorney’s Office in Manhattan is investigating the stablecoin provider. The potential charges allegedly center on whether third parties used Tether’s platform to facilitate illegal activities like drug trafficking, terrorism financing, hacking, or to disguise proceeds from such crimes.

WSJ’s Accusations Against Tether Briefly Tanks the Market

Shortly after WSJ’s report, Ardoino stated that Tether had not observed any indications of a federal probe. However, the publication, citing unnamed sources, suggested that investigators are looking into whether the stablecoin has indirectly supported sanctioned entities.

More specifically, they are looking into whether the stablecoin allowed Russian arms dealers and groups, such as Hamas, to move funds covertly.

“As we told to WSJ there is no indication that Tether is under investigation. WSJ is regurgitating old noise. Full stop,” Paolo Ardoino wrote.

The report stirred immediate volatility in the cryptocurrency market. Bitcoin, which had been nearing the $70,000 threshold, dropped significantly from $67,000 to $65,000 following the news. However, Ardoino’s quick denial helped stabilize the market, and Bitcoin prices rebounded to approximately $66,700.

Read more: A Guide to the Best Stablecoins in

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Author: Mohammad Shahid