Tether Being Investigated For Bank Fraud By US Justice Department

A years-long criminal probe into Tether is allegedly underway, with charges expected to be potentially levied against executives of the firm behind the stablecoin. As reported by Bloomberg this morning, the investigation is reportedly looking to determine whether or not certain executives committed bank fraud, with the investigation being led by the US Department of Justice.

The investigation notably is not focused on the transactions of today, but rather events that occurred several years ago. Effectively, the investigation surrounds whether the firm committed bank fraud by concealing that transactions related to the firm were being conducted for the purpose of cryptocurrencies.

Letters have reportedly been sent to a number of individuals related to the case in recent months, effectively informing them that they are targets in the investigation.

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The investigation follows a settlement entered into by Tether and the New York Attorney General back in February, where it was alleged that the company lied about its currency being backed by US dollars on a one to one basis. At the time, the firm had no access to banking, and as a result, could not be backed on such a basis.


Information for this briefing was found via Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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