Tether Responds to Bloomberg Report, Calling New Story ‘Age-Old News’

Stablecoin issuer Tether has released a statement in response to reports that a new team is taking over a Justice Department probe of its top executives.

In a recent report, Bloomberg said that federal prosecutors in Washington warned Tether’s top executives last year that they could be facing criminal charges for allegedly deceiving banks in relation to USDT, the world’s largest stablecoin.

“Prosecutors examined whether Tether officials had opened any bank accounts under false pretenses, such as by obscuring that the cash was connected to crypto. The government was considering a so-called right-to-control theory, accusing executives of fraud if they made misrepresentations.”

The article says the investigation has not yet concluded, but the office of US Attorney Damian Williams in Manhattan, known for aggressively pursuing suspected cryptocurrency crimes, is now in charge of the probe.

Tether denies the claims in the story, saying that it has been working with law enforcement around the world and authorities are not investigating its executives.

“Tether executives have had no interactions with the DOJ in connection with any investigation for well over a year and the DOJ does not appear to be actively investigating Tether.”

The stablecoin issuer says that Bloomberg’s report is inaccurate, and a sensationalist form of journalism.

“Bloomberg has proven themselves time and time again to be desperate for attention in an industry that they just do not understand. This most recent attempt to tarnish the reputation of Tether, one of the industry’s most significant contributors is yet another example of this behavior. This is Bloomberg recycling old news that isn’t even factual.”

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