Paolo Ardoino Refutes WSJ Article on US Investigation into Tether

US authorities are investigating Tether, the issuer of USDT, for potential violations of sanctions and anti-money laundering regulations, according to The Wall Street Journal, citing sources.

The newspaper reports that the Manhattan District Attorney’s office is examining whether the company’s stablecoin was used by third parties for illegal activities such as terrorism, drug trafficking, and hacking.

The US Treasury is allegedly considering punitive measures against Tether, including sanctions, for the use of USDT by individuals and groups under American sanctions, WSJ added.

Tether CEO Paolo Ardoino has denied the claims of an investigation against the company.

As we told to WSJ there is no indication that Tether is under investigation. WSJ is regurgitating old noise. Full stop.

— Paolo Ardoino ?? (@paoloardoino) October 25, 2024

“As we told WSJ, there is no indication that Tether is under investigation. WSJ is regurgitating old noise. Full stop,” he wrote.

Hours after his initial tweet, Ardoino posted another, emphasizing the issuer’s regular and direct interaction with law enforcement to prevent the misuse of USDT by “rogue nations,” terrorists, and criminals.

At Tether, we deal regularly and directly with law enforcement officials to help prevent rogue nations, terrorists and criminals from misusing USDt. We would know if we are being investigated as the article falsely claimed. Based on that, we can confirm that the allegations in…

— Paolo Ardoino ?? (@paoloardoino) October 25, 2024

“We would know if we are being investigated, as falsely claimed in the article,” he added.

In an official blog response, Tether criticized the WSJ article.

“It is wildly irresponsible for WSJ to write articles with reckless accusations with such certainty when no authorities have confirmed these rumors, and sources are unnamed,” the publication stated.

In September, Tether was again accused of a lack of transparency regarding its reserves. According to Cyber Capital founder Justin Bons, the company’s business structure raises concerns and evokes memories of the FTX collapse.

In October, Ardoino described Tether as the US government’s “best friend” due to the issuer’s compliance efforts and cooperation with authorities, as well as holding approximately $98 billion in government treasury bills.

Previously, the company reported assisting 145 law enforcement agencies in 40 jurisdictions to recover over $108.8 million in USDT since its launch in 2014.