A U.S. investigation into Tether is closing in on whether executives behind the digital token engaged in bank fraud, a criminal case that would have wide implications for the cryptos.
- Tether’s pivotal role in the crypto environment is now recognized because the digital coin is widely used to trade Bitcoin.
- The Justice Department probe is focused on the conduct of the executives, when Tether was in its early stages. Federal prosecutors will investigate whether Tether concealed from banks that transactions were related to crypto.
- Criminal charges would mark one of the most critical developments in the US government’s clampdown on digital currencies.
- Federal prosecutors have been angling on Tether since 2018. Recently, they sent letters to individuals informing them that they were targets of the investigation.
The probe is reaching a tipping point as stablecoins continue to attract increased scrutiny from regulators. The US Treasury Department and Federal Reserve are concerned the tokens could undermine financial stability.
USDT USD down -0.08%, BTC USD up +10.47%
Source: Bloomberg.