As a seasoned researcher with years of delving into the murky depths of the digital asset world, I must admit that Tether’s latest brush with the law is not surprising, but rather a testament to its resilience and adaptability in the face of adversity. The ongoing investigation by the Manhattan U.S. Attorney’s office marks the 19th time Tether finds itself under scrutiny from the US government – a relationship that has spanned over a decade now. It’s almost like they’re old friends, catching up over tea every few years.
The U.S. authorities are looking into Tether, the leading global stablecoin, due to allegations it could be involved in illicit activities once more. Notably, this is the 19th instance of Tether facing scrutiny from the U.S. government.
On Friday, it was reported that high-ranking officials from the Manhattan U.S. Attorney’s office are investigating allegations that Tether, represented by the ticker USDT, has been employed by some individuals to finance illicit activities. Known for its anonymity and ability to avoid chargebacks, Tether is often appealing for clandestine transactions.
The legal challenges for Tether started in 2012 when it faced lawsuits from Bitcoinica, a business connected to Tether’s sibling company, Bitfinex. Since then, numerous government probes have examined Tether closely over the years.
- 2015: Bitfinex acknowledges a Commodity Futures Trading Commission (CFTC) probe while USDT’s market cap stood at $451,000.
- 2016: Bitfinex settles a CFTC allegation for illegal trading with a USDT market cap of $2.9 million.
- 2017: Tether admits to not having a bank account with more than $61.5 million in cash, market cap reaches $418 million.
- 2018: The Department of Justice and CFTC launch a probe into Bitcoin price manipulation linked to USDT, whose market cap has surged to $2.5 billion.
- 2021: Tether pays $41 million in fines for misleading claims about its reserves, and its market cap rises to $70 billion.
- 2022: A Boston U.S. Attorney seizes 73,586 USDT linked to criminal activity and its market cap is $66 billion.
- 2023: Tether complies with requests from the DOJ and other agencies as its market cap reaches $90.8 billion.
- 2024: The latest investigation by the Manhattan U.S. Attorney’s office sees USDT’s market cap soaring to $120 billion.
As a crypto investor, I’ve observed that despite lingering doubts about Tether, it has persistently grown, even more so after USDC momentarily deviated from its $1 peg in March 2023. Even with the entry of new stablecoins from prominent players like PayPal, Tether remains unchallenged, thanks to its backing by Cantor Fitzgerald, a firm steered by Trump advisor Howard Lutnick.
According to a post made by Tether’s CEO, Paolo Ardoino, on social media platform X, there seems to be no evidence suggesting that an investigation into Tether is currently ongoing. He further stated that the Wall Street Journal appears to be repeating outdated rumors, and ended his message with a definitive statement.
However, news of a probe into Tether’s business raises concerns, echoing past impacts like FTX’s collapse. Tether’s role in crypto is even larger, as its stablecoin underpins much of the industry. Potential charges could parallel those against Binance for alleged money laundering and sanctions violations.
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2024-10-28 16:04