US attorneys are pursuing Tether executives for possible bank fraud | Techy Kings


An investigation by US authorities into Tether and its sister crypto exchange Bitfinex has been reassigned to find out whether executives behind the world’s largest dollar-denominated stablecoin committed bank fraud.


According to a Bloomberg report, the case has been moved within the department and the potential criminal case will have far-reaching implications for the cryptocurrency market.

U.S. Attorney Damian Williams in Manhattan, whose office has been one of the most aggressive in pursuing suspected cryptocurrency crimes, took over the investigation in recent weeks, according to people familiar with the matter.

According to sources cited by Bloomberg, the investigation focuses on events during the nascent stage Tetherchecks whether the USDT cooperative hides from the bank that the transaction is linked to crypto.

Bloomberg reported in 2021 that federal prosecutors had sent a letter to unnamed executives at Tether informing them that they were the target of an investigation. The source, who declined to be named because the investigation is confidential, added that US authorities had been actively looking into the allegations since 2018.

Tether officials denied “years of claims,” ​​and said the Bloomberg article followed a pattern of repackaging outdated claims as “news,” patently designed to generate clicks.

The company added: “Bloomberg has proven themselves time and time again to be desperate for attention in an industry they don’t understand. The latest attempt to tarnish the reputation of Tether, one of the most important contributors to the industry is another example of this behavior. This is news long Bloomberg recycling that is not really factual.”

Tether and its related exchange Bitfinex have always had a troubled banking relationship that ultimately led to a series of undisclosed arrangements with third-party payment providers. In 2017, they filed suit against Well Fargo after the US bank blocked wire transfers of US dollars originating from the platform’s accounts with four different Taiwanese banks. The Asian lender has used Wells Fargo as a correspondent bank for US dollar wire transfers for two years without any problems.

At the time, Wells Fargo apparently stopped processing funds due to the nature of Bitfinex and Tether’s businesses involving cryptocurrencies. However, stablecoin issuers argue that US-based banking institutions know their business model through a KYC process shared by the platform’s Taiwanese partner.

Since the SEC hit ripple with accusations of selling unregistered securities, the cryptocurrency community is wondering which assets could face the same fire?

While a number of cryptocurrencies and similar assets are under speculation, Tether CTO Paolo Ardoino dismissed these concerns and said there was no evidence that US regulators would go after them either.

Additionally, Tether said it is increasing its collaboration with the DOJ by helping the department in real time with some of the nation’s largest cybercrime and national security cases.

“In fact, Tether executives have had no interaction with the DOJ regarding any investigation for over a year and the DOJ does not appear to be actively investigating Tether. Tether and Bitfinex have actually been identified as victims in the Fowler case referenced by Bloomberg,” the statement said.


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