According to the US Department of Justice, Tether is now the focus of their investigation.
Bloomberg reported that Tether (USDT), the largest stablecoin, is under scrutiny by the US Department of Justice.
According to the report, the research is focused on events that occurred a few years back when Tether was in its infancy.
According to the report, Tether is being investigated by the agency for hiding transactions related to crypto from banks, the report added citing three individuals with direct knowledge of the matter.
Tether has been in conflict with US authorities before.
Letitia James, New York’s Attorney General, sued iFinex, Tether parent company, and Bitfinex for allegedly covering up $850m in losses due to the collapse of a Panda-based cryptocurrency exchange using USDT. In February, a settlement of $18.5 millions was reached to end the case.
Two main tokens still dominate the stablecoin universe: Tether and Circle USD Coin(USDC).
Although the Circle stable coin (USDC) with market cap of $28 billion boasts its regulatory credit, but it still has much to do to catch up Tether with $60 billion market cap.
Tether responds to Bloomberg article
“Today, Bloomberg published an article based on unnamed sources and years-old allegations, patently designed to generate clicks. This article follows a pattern of repackaging stale claims as “news.” The continued efforts to discredit Tether will not change our determination to remain leaders in the community.
Tether routinely has open dialogue with law enforcement agencies, including the U.S. Department of Justice, as part of our commitment to cooperation, transparency, and accountability. We are proud of our role as industry leaders in promoting cooperation between industry and government authorities in the U.S. and around the world. We remain committed to our customers and the industry-leading technology and transparency that has led to our growth.
It is business as usual at Tether, and we remain focused on how to best serve the needs of our customers.”