The US Authorities Investigating Tether for Possible Offense

by in Cryptocurrency News

Tether execs investigation

As reported by Bloomberg on Monday, the US Department of Justice began an investigation to find out if Tether execs are behind a bank fraud.

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Particularly, the process is meant to discover if the company which developed the dollar-pegged stablecoin USDT tricked banks making transactions and concealing their crypto-related nature.

Bloomberg says the information was delivered by 3 people who are directly connected to the subject. They preferred not to be named as the probe is secret.

The scrutiny matter took place years ago, when Tether was in its first stages of development. Previously, the New York Attorney General accused Tether and the platform Bitfinex of covering up the loss of around $850 M in client funds.

However, the firms reached an agreement with the authority paying an $18.5 million fine. USDT was released in 2014. Currently, it's the third-largest cryptocurrency, having over $61.8 B market cap.