CEO Of USDT Cryptocurrency Stablecoin Accused Of Bank Fraud, What Is The Impact On Tether Prices?

JAKARTA – Recently the US Department of Justice (DOJ) conducted an investigation into the boss of the cryptocurrency Tether (USDT). The USDT official was reported to have committed fraud against the bank in the early days of the cryptocurrency business.

According to a Bloomberg report, the US Department of Justice is currently investigating a fraud by USDT in 2014. At that time, Tether was still in the early stages of launching its coin.

The DOJ is investigating the possibility of Tether hiding transactions from banks linked to Tether. The report is based on three sources familiar with the matter.

With this news, Tether has sent a letter explaining that the company always has an open dialogue with the authorities, including the DOJ.

The USDT stablecoin explained that its business is still running as usual. Tether also claims that it will continue to focus on providing the best service to its customers.

"This is business as usual at Tether, and we also remain focused (on) how to best serve the needs of our customers," Tether said in a statement.

On the other hand, the DOJ has not yet issued an official statement regarding the investigation. The DOJ is still conducting an in-depth investigation and declined to comment.

In addition, Bloomberg also explained that federal prosecutors have been targeting Tether since 2018. A source said authorities had alerted the company and that they were being investigated by US authorities.

Currently USDT has dominated the crypto market apart from BTC, ETH, and BNB. Not only Tether, another stablecoin crypto currency namely USD Coin (USDC) is also reportedly included in the target of investigation by DOJ authorities.

It is not yet known whether the problems experienced by USDT will have an impact on Bitcoin cs or not.