Bitcoin and other major cryptocurrencies encountered sharp price swings following a controversial report on Tether, which occurred amid escalating tensions in the Middle East.

These events led to substantial losses for traders holding highly leveraged positions, with daily liquidations soaring to around $380 million.

Tether’s Denial Fails to Ease Market as Bitcoin and Altcoins See Sharp Liquidations

On October 25, the Wall Street Journal published an article suggesting that the US Attorney’s Office was investigating Tether. According to the report, allegations involve third-party use of Tether’s platform to possibly conduct illegal activities.

Tether strongly denied the accusations, calling the article “reckless” and based on “unsubstantiated claims.” In a public statement, Tether stressed the absence of official confirmation from any authority and criticized the article’s reliance on unverified sources. Tether’s USDT is the largest stablecoin in the industry, with a market capitalization of around $120 billion.

“At Tether, we deal regularly and directly with law enforcement officials to help prevent rogue nations, terrorists and criminals from misusing USDt. We would know if we are being investigated as the article falsely claimed. Based on that, we can confirm that the allegations in the article are unequivocally false,” Tether CEO Paolo Ardoino said.

Read more: A Guide to the Best Stablecoins in 2024

The news led to a bearish market shift, halting Bitcoin’s attempt to breach $70,000 — a level it hasn’t seen in three months. According to BeInCrypto data, Bitcoin’s price dipped sharply, hitting a daily low of $66,500 before

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Author: Oluwapelumi Adejumo