- Bloomberg’s report says Tether’s executives are under scrutiny.
- The Department of Justice supposedly is investigating the firm for fraudulent activity.
- Tether responded to the matter through a note of its own.
The world’s third-largest cryptocurrency by market cap — Tether, is under scrutiny. According to a report by Bloomberg, it seems the Department of Justice is investigating the company’s executives for possible fraudulent activity.
In detail, the US entity is looking for possible signs of bank fraud. In particular, the Justice Department will be investigating some top-ranking Tether executives. It will be looking into the possible misconduct in terms of bank fraud and other criminal activity.
The criminal investigation could uncover criminal activities that will hold the firm and its executives accountable. To highlight, the entity will be checking in on obscure transactions that could be tied to money laundering amongst other illegal activities.
To counter this report by Bloomberg, Tether responded in a note. It said that Bloomberg’s report is based on ‘unnamed sources’ and old allegations. More so, Tether says it has an open dialogue with law enforcement agencies.
In fact, it routinely checks in with agencies like the US Department of Justice as a token of its commitment to provide a cooperative, transparent, and accountable service. The note makes it very clear about Tether’s mission to provide the best service it can to meet the needs of its customers.
In line with its note, Tether has always been forthcoming with its operations. For instance, just a few days ago, Tether promised a full audit in the coming months. This was a reply to some critics claiming that USDT is not a real stablecoin.
Remarkably, when this audit will take place, it will be the first-ever audit within the stablecoin sector. Hence, Tether continues to be a leader in its industry. In addition, Tether’s general counsel — Stuart Hoegner, shared more in an interview.