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Tether Faces U.S. Investigations Over USDT Stablecoin

U.S. authorities probe Tether's USDT stablecoin. Allegations range from commingling funds to sanctions violations and misuse.

In this picture, we see the coin in gold and brown color. We see some text written as "The United...
In this picture, we see the coin in gold and brown color. We see some text written as "The United States Of America". It might be a money coin. In the background, it is brown in color and it looks like a carpet.

Tether Faces U.S. Investigations Over USDT Stablecoin

Tether, the company behind the popular stablecoin USDT, faces multiple investigations from U.S. authorities. The Commodity Futures Trading Commission (CFTC) probes alleged commingling of customer and company funds, while the Department of the Treasury considers sanctions for potential immigration-related violations. Meanwhile, Tether cooperates with law enforcement to combat misuse of USDT.

The CFTC investigation, opened recently, focuses on claims that Tether and its sister company Bitfinex mixed customer and company funds, leading to an $850 million shortfall. Tether has since been working to comply with new regulations like the GENIUS Act, aiming to boost transparency and reserve backing for stablecoins in the U.S. market.

Separately, the U.S. Department of the Treasury is looking into Tether's potential immigration-related violations and anti-money laundering regulations. There are also allegations that Tether's stablecoin, USDT, may have been used by individuals under U.S. immigration restrictions. Tether has been assisting 145 law enforcement agencies in 40 jurisdictions to recover over $108.8 million in USDT since its launch in 2014. Additionally, Manhattan prosecutors are examining whether USDT has been used for illegal activities such as terrorism financing, drug trafficking, and cybercrime.

Tether's USDT stablecoin is under scrutiny from U.S. authorities due to potential regulatory violations and misuse related to immigration. Despite these investigations, Tether maintains it is cooperating with law enforcement and working to strengthen its compliance measures.

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