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Tether Execs Said to Face Criminal Probe Into Bank Fraud

Legal

coinpedia.org 26 July 2021 11:13, UTC
  
Reading time: ~2 m

According to a Bloomberg Report, A US investigation against Tether is set to happen. The investigation will focus on whether the company’s leaders committed bank fraud.

The Federal prosecutors are looking into whether Tether disguised the fact that its transactions were related to cryptocurrency from banks during its early days.  The news is based on the sayings of three people with direct knowledge of the case who remain anonymous due to the ongoing investigation.

The US Department of Justice is now said to examine whether Tether misled banks about crypto business.

The company has issued a statement which quotes,

“Tether routinely has open dialogue with law enforcement agencies, including the DOJ, as part of our commitment to cooperation and transparency,”

The cryptocurrency, with a market size of roughly $63 billion dollars, is the third-largest digital currency by market capitalization and the largest stablecoin. Tether is considered a digital currency as it does not have a blockchain. The platform mints USDTs.Tether accepts USD from depositors and then “mints” an equivalent quantity of US dollars. 

This comes as the Crypto market caught up a bullish momentum today after months of consolidation. What this means for the Tether price and the broader crypto market is to be watched out for. Tether(USDT) is currently trading at $0.98864 down by 0.5% in the last 24 hours. 

Popular Analyst Crypto Kaleo called it a release of FUD (Fear-Uncertainty-Doubt) amid a thriving crypto market.

BREAKING: FOR THE FIRST TIME EVER FUD HAS BEEN RELEASED REGARDING TETHER.

— K A L E O (@CryptoKaleo) July 26, 2021

The Cardano Live Host Ric MacCraken regarding the matter said The news will not have any impact as Tether gets into legal difficulties with the Justice Department every couple of years and has no influence.

nobody cares, Tether gets in trouble with the Justice Department every couple years and not impact. All good! Link to 3 year old article for example https://t.co/XaXpiPbDgV

— Rick McCracken (@RichardMcCrackn) July 26, 2021

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