Tether Faces Scrutiny Amid Allegations of Sanctions and Money Laundering Violations

Reports suggest U.S. federal prosecutors are investigating Tether, while the company denies any ongoing probe.

Tether, the world's largest stablecoin with a market cap of $120 billion, is reportedly under investigation by U.S. authorities for potential violations of anti-money laundering and sanctions laws.
The Wall Street Journal reports that federal prosecutors in Manhattan are examining whether Tether has been used by criminal networks for illegal activities such as drug trafficking and terrorism.
Tether CEO Paolo Ardoino has publicly denied these allegations, stating there is no indication of an investigation and criticizing the media for spreading unverified claims.
Despite the scrutiny, Tether continues to play a crucial role in the crypto market, serving as a stable currency alternative in regions with limited access to the U.S. dollar.
Tether has faced previous regulatory actions, including fines from the New York Attorney General and the Commodity Futures Trading Commission for past violations.