The war against crypto companies is far from over. Scandals involving large corporations are increasing every day. The latest involves Tether, the issuer of the stablecoin USDT. According to a Wall Street Journal report published on Friday, Tether allegedly used false documents to access bank accounts. Although the company has responded to these accusations, however, it has denied all charges.
Tether allegedly illegally accessed bank accounts through falsified documents
The Wall Street Journal has recently published an investigation accusing Tether of illegally accessing bank accounts using obscure intermediaries and falsified documents. In 2018, the company was reportedly to be supported financially by backers which preferred to use offshore companies to help the company deal with financial difficulties.
The American newspaper has, according to its assertions, emails and documents attesting to the veracity of its allegations. More specifically, he would have in his possession an email from Stephen Moore where he agrees to fraudulent maneuvers in China aimed at circumventing the banking system.
Additionally, the report states that Tether opened bank accounts using the names of officials from other companies, changing the names of these companies to gain access to the global financial system in 2018. As a result, authorities had to shut down a fictional bank called Crypto Capital Corp, who allegedly held the Tether funds. Bitfinex, another company, was also allegedly involved in the case. According to the report, these two companies managed to open about nine bank accounts for shell companies in Asia in 2018.
Tether denies all charges
Tether is facing numerous charges and its technology director, Paolo Ardoino, responded to the Wall Street Journal allegations on Twitter. He calls the report misleading.
Tether also released a communicate to refute the accusations and to explain that the company adheres to anti-money laundering and anti-terrorist financing legal requirements.
Bitfinex and Tether have world-class compliance programs and adhere to applicable anti-money laundering, know your customer and anti-terrorist financing legal requirements.Communicate
Although these accusations may affect Tether’s image, the company is determined to maintain its support for USDT, which is the most important stablecoin in the crypto market with a market capitalization of over $71.5 billion.
Cryptocurrency companies are currently facing a crusade in the United States, and the accusations against Tether add to many scandals in the sector, such as the Silvergate Bank scandal.
Coming from a journalism university background, I came across Bitcoin and cryptocurrencies not long ago.
The potential of the Blockchain seduced me and I made it my research topic.