It’s a story as old as time: The Justice Department is investigating Tether and USDT. It has been reported far and wide, and for years on end, with speculation. We’re back again as 2022 approaches, this time courtesy of a new report from Bloomberg.
Let’s take a look at what’s being reported, and Tether’s reaction.
Bloomberg’s latest report on Tether
Feather Live broadcast of Bloomberg crypto report on Monday afternoon, added with a published piece Released earlier in the day, the outlet reported that the US Department of Justice (DOJ) was improving its investigation into possible bank fraud allegations against Tether.
According to Bloomberg, officials have breathed new life into the investigation, including handing over the case to Manhattan-based US attorney Damian Williams, whom Bloomberg describes as one of the most aggressive crypto prosecutors – to the extent that he has “recently It has recently secured a guilty “pleasure of a person affiliated with one of Tether’s payment processors.”
Reports have been swirling around the DOJ and Tether for almost half a decade, and should come as no surprise to anyone at this point. However, the stablecoin’s reaction doesn’t simply contradict Bloomberg’s report – it frames it as outright false.
USDT's market cap dominance has floated between 5-10% for most of this year. | Source: CRYPTOCAP: USDT on TradingView.com
Tether CTO Paolo Ardoino issued a quick response via a Twitter thread:
Bloomberg first reported on the DOJ’s “investigation” in November of 2018 and in the years that followed. Stories of sordid attempts at a weeping wolf.
— Paolo Ardoino (@paoloardoino) 31 October 2022
Tether is issued A formal response on their website Also, describing the Bloomberg report as “desperate for attention” and “recycling old news that isn’t even factual”. Critics cited issues such as Tether’s employee-to-circulating supply ratio (Tether has more than $60B in USDT circulating employees), as well as the stablecoin reserve discrepancy (the stablecoin platform has made $ in fines for no entry). 60 million paid off wrongdoing), the major concern in the viability of Tether to serve as a de facto ‘reserve stablecoin’.
Tether has stressed that the firm remains transparent and in communication with law enforcement officials, and that it is “business as usual at Tether.” The response directly contradicts the Bloomberg report, which states that “Tether officials have not had any conversations with the DOJ regarding any investigations for over a year and the DOJ is not actively investigating Tether.” Used to be.”
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