Tether’s (USDT-USD) CEO says there’s no sign of any investigation, even though a recent Wall Street Journal report claimed U.S. authorities might be looking into whether the crypto company violated sanctions or anti-money laundering laws. According to the WSJ, the Manhattan U.S. Attorney’s Office is probing whether Tether has been used by third parties to support illegal activities like drug trafficking or terrorism.
As the world’s largest stablecoin, Tether is meant to maintain a steady value, but its popularity has drawn scrutiny. While CEO Paolo Ardoino assured users on X that Tether isn’t under investigation, the Treasury Department is reportedly considering sanctions due to its widespread use by sanctioned entities. This isn’t really anything new, as Tether has faced questions before about potential bank fraud involving its backers.
Interestingly, Tether responded to the report, accusing the WSJ of downplaying its extensive cooperation with law enforcement to prevent misuse of its currency.
No Plans for an IPO
In a separate development, Tether’s CEO recently shared that Tether has no plans to go public anytime soon. He explained to FOX journalist Eleanor Terrett that an IPO would slow down Tether’s operations and impact its mission to shake up the industry.
Ardoino pointed out that Tether is in a strong financial position. More specifically, it has made billions in profit over the last two years, which includes $5.2 billion in the first half of 2024 alone. With $12 billion in profit and plenty of capital on hand, Tether doesn’t need the extra cash that an IPO would bring, which is usually the main reason companies go public.
