Tether Denies Allegations of U.S. Investigation on AML Violations

Tether has denied allegations that it is under investigation by the US government for potential anti-money laundering (AML) violations, following a report published by the Wall Street Journal (WSJ) last week. The WSJ article, which cited unnamed sources, claimed that federal investigators in Manhattan were examining whether Tether had been used by illicit actors to support illegal activities. Tether, however, dismissed these claims as "pure speculation," with no named sources or official statements backing them.

In response, a Tether spokesperson criticized the WSJ for making “reckless allegations,” stating that it is “wildly irresponsible” to publish such accusations without any formal confirmation from authorities. Tether affirmed it has no knowledge of any such investigation targeting the company.

The WSJ report follows a campaign from the conservative nonprofit Consumers' Research, which has accused Tether of being used by "the world’s worst actors." Will Hild, the executive director of Consumers' Research, commented on the article, saying it further underscores the need for Tether to undergo an audit by a reputable third party to confirm the legitimacy of its operations. Hild warned consumers about Tether’s connections with questionable actors, suggesting the company’s resistance to stricter oversight raises concerns.

Tether CEO Paolo Ardoino assured the public that Tether’s reserves remain robust. He reported that the company holds about $100 billion in US Treasuries, 82,000 bitcoin, and 48 tons of gold, emphasizing the safety of its USDT backing. Notably, the WSJ article did not accuse Tether of misrepresenting its reserves, nor did it claim that Tether had breached any laws regarding asset backing. In 2021, Tether settled with the Commodity Futures Trading Commission (CFTC) for $42.5 million over earlier claims that USDT was fully backed by US dollars.

Ardoino also highlighted Tether’s longstanding cooperation with law enforcement in combating fraud, stating the company has “voluntarily blocked” almost 2,000 wallets linked to suspected illegal activities.

In September, Tether strengthened its regulatory engagement by hiring Jesse Spiro, a former PayPal executive, to lead its government affairs team. Spiro’s role includes building relationships with lawmakers, regulators, and other key figures to ensure transparent policy alignment for Tether's operations.