“Old noise” may be a new name for FUD, as Tether defends itself from a report in The Wall Street Journal about US government investigations.
The United States federal government is investigating stablecoin issuer Tether, The Wall Street Journal reported in an “exclusive” article on Oct. 25, citing “people familiar with the matter.” Tether CEO Paolo Ardoino called the story “old noise,” but it sent a shudder through the cryptocurrency market.
According to the newspaper, the US Attorney’s Office for the Southern District of New York, that is, the Justice Department, is carrying out a criminal investigation of the use of Tether (USDT) by third parties to fund illicit activities or launder money generated by those activities. That investigation has been going on for “several years.”
Simultaneously, the Treasury Department is considering sanctioning Tether because of its “widespread use by individuals and groups sanctioned by the US, including the terrorist group Hamas and Russian arms dealers,” the newspaper continued.
