Stablecoin issuer Tether on Saturday responded to the Wall Street Journal’s report on using fake documents and shell companies to gain banking access. The USDT issuer remarks the report as another FUD against it.
In a blog titled “More Tether FUD from WSJ” on March 4 IST, Tether claims the allegations by the Wall Street Journal are “wholly inaccurate and misleading.” It also argues that both crypto exchange Bitfinex and stablecoin issuer Tether have compliance programs to adhere to Anti-Money Laundering, Know Your Customer (KYC), and Counter-Terrorist Financing legal requirements.
According to the blog, Bitfinex and Tether always help global law enforcement, the U.S. Department of Justice, and other law enforcement agencies to prevent money laundering, terrorism, and other crimes.
Tether asserts it will continue offering the “most liquid and reliable stablecoin experience” despite these distractions and FUD against USDT or its companies. Tether reported a $700 million profit in Q4 2022 and at least $67 billion in consolidated total assets and excess reserves of at least $960 million.
In fact, Tether is always surrounded by controversies and numerous accusations due to the extensive use of USDT stablecoin in the crypto market. Similarly, banks play a crucial role in maintaining stablecoin liquidity in the market. The firm was also linked to beleaguered crypto exchange FTX, but the connection was never proven.
WSJ Allegations on Tether
The WSJ report alleges that Tether and related brokers leveraged falsified documents and shell companies to gain banking access in 2018.
The article quoted emails by Stephen Moore, co-owner of Tether Holdings, shows a China-based trader used false invoices and contacts to gain banking access.
At the time of writing, Tether (USDT) remains pegged to the US dollar at a $71 billion market cap. The stablecoin market has increased recently after the U.S. regulators stopped minting Paxos-issued Binance USD (BUSD) stablecoin.
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