media: US Department of Justice investigates Tether activity on suspicion of bank fraud – Bits Media

U.S. Department of Justice to review Tether's early-stage performance. USDT stablecoin issuer suspected of hiding information from banks.

U.S. Attorney's Office Investigates, Did Tether executives hide from banks, that their banking transactions were associated with cryptocurrencies. The US Ministry of Justice will analyze the company's activities in the first years of its existence. About it
reports Bloomberg with reference to sources, Familiar with the situation, and who wished to remain anonymous in connection with the confidentiality of the investigation. If the guesses of law enforcement agencies in relation to Tether are confirmed, A criminal case will be instituted against the company.

Considering, that USDT plays an important role in the ecosystem of cryptocurrencies, This will have negative consequences for the entire industry. USDT is considered one of the most popular stablecoins, not subject to sharp fluctuations in prices, Therefore, it is often used to buy bitcoin and other cryptocurrencies. Today in the USDT circulation is located about $62 billion, which is more than half of all transactions with bitcoin.

“Tether regularly interacts with law enforcement agencies, including the US Department of Justice. We are ready to cooperate with regulators, to ensure the transparency of our work ", - says Tether's statement.

Recently, regulatory authorities have begun to pay close attention to stablecoin, since they allow payments bypassing the adjustable banking system. The US Department of Finance and the US Federal Reserve are concerned about those, that stabilcoins threaten world financial stability, Since they can be used to launder money and perform other illegal actions.

Last week, US Minister of Finance Janet Yellen (Janet Yellen) He called on the supervision of the supervision of actively when creating new regulatory rules for the regulation of stablecoins.

First, USDT was released in 2014 year, To simplify the interaction of banks with the cryptocurrency market. Banks did not want to open accounts for cryptocurrency exchanges due to fears, that digital currencies are used only for drug trafficking, kibebaat and financing of terrorism.

The first problems with banks began in the company in 2017 year. Tether and the Bitfinex cryptocurrency exchange associated with it sued the American Bank of Wells Fargo for blocking bank transfer, which were requested through Taiwan banks. According to Tether and Bitfinex, Wells Fargo had to know, that companies intended to purchase US dollars, to make USDT access to their customers. However, shortly after filing the claim, the case was closed.

During the long -term investigation of Tether, The US Ministry of Justice found out, Whether USDT stabilcoins were used for illegal manipulations with bitcoin during the "bull trend" in 2017 year.

Earlier, New York Prosecutor General Leticia James (Letitia James) accused Tether leaders of, that they hid information about the losses of the company and falsely declared, that each USDT is provided by the US dollar in the ratio 1:1. According to James, in 2017 the company did not have access to banking services, Therefore, the presence of reserves to support tokens was impossible.

In February, Bitfinex and Tether agreed to pay a fine in the amount $18.5 Milln to resolve the claims of the prosecutor's office of New York. The companies did not recognize or deny the charges. In May, Tether has published a detail of the security of stablecoin. It turned out, What about 76% USDT is backed by traditional currencies and obligations in them.