New fraud allegations against USDT
The stablecoin issuer again has to justify its murky practices.
The stablecoin provider once again has to justify its murky practices. What's the truth behind the latest Tether FUD?
The Wall Street Journal (WSJ) reports that the stablecoin issuer Tether obtained access to the international banking system through fraudulent means. Intermediaries for the USDT issuer allegedly forged documents and opened bank accounts through shell companies.
In an email obtained by the WSJ, one of Tether's owners reportedly admitted that a Chinese trader submitted fake invoices and contracts to certain banks on behalf of the company.
Moreover, Tether was accused of using "millions of dollars in seized funds" and links to "terrorist organizations". As a result, the U.S. Department of Justice would also be investigating the stablecoin provider.
Meanwhile, Tether's CEO has rebutted the allegations in a tweet. He said the WSJ report was "as usual" filled with "misinformation and inaccuracies."
His company also described the report as "misleading and incorrect" in a statement on Friday. The sister company Bitfinex and Tether have a "world-class compliance program" and work closely with global law enforcement agencies, according to the company.
The WSJ report has been dismissed as FUD (Fear-Uncertainty-Doubt) and called an "unfair attack" on the company.
Tether has faced criticism in the past. Time and again the stablecoin issuer has been accused of money laundering or financial fraud. The situation around the U.S. dollar reserves backing the USDT coin remains opaque.
