Tether CEO denies reports as US probes and weighs sanctions

Tether CEO Paolo Ardoino denied reports of lawmakers investigating the major cryptocurrency company over potential violations of anti-money-laundering and sanctions laws.

The reported investigation, led by Manhattan prosecutors, focuses on whether Tether’s cryptocurrency Tether

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Tether has been used to fund illegal activities, such as drug trafficking or terrorism, or to launder money from these activities, according to The Wall Street Journal.

At the same time, the U.S. Treasury Department is considering imposing sanctions on Tether, per WSJ.

Sanctions could prevent Americans from conducting business with the company, primarily because its cryptocurrency has allegedly been used by sanctioned individuals and groups, including Russian arms dealers and the terrorist group Hamas.

Tether CEO Paolo Ardoino vehemently denied these reports, posting on X: “As we told WSJ, there is no indication that Tether is under investigation. WSJ is regurgitating old noise. Full stop.”