US Investigation Into Tether Unnerves Crypto Markets

The U.S. federal government is reportedly investigating stablecoin issuer Tether, according to an Oct. 25 article from The Wall Street Journal, which cited sources “familiar with the matter.” Tether CEO Paolo Ardoino dismissed the report as “old noise,” but the news still unsettled the cryptocurrency market. The report states that the U.S. Attorney’s Office for the Southern District of New York, part of the Justice Department, is conducting a criminal investigation into whether Tether’s USDT has been used by third parties to fund illicit activities or launder proceeds from those activities. This investigation has allegedly been ongoing for “several years.”