cryptojournalist
Tether, a major player in the stablecoin world, is under fire from critics, including organizations like the United Nations and consumer protection groups. Given the current climate of US government actions, it seems quite likely that Tether is indeed being investigated.
Back in October 2021, Tether and its partner exchange, Bitfinex, were fined a total of $42.5 million by the Commodity Futures Trading Commission (CFTC) for failing to follow regulations. Ripple CEO Brad Garlinghouse even said in a May podcast, “The US government is going after Tether, that is clear to me,” though he didn’t share where he got that information.
Despite all this scrutiny, Tether claims it has been working with law enforcement. In August, the company announced that it helped over 145 law enforcement agencies recover more than $108.8 million in USDT connected to illegal activities since its launch in 2014.
Effects on the Cryptocurrency Market
News of Tether’s possible investigation has shaken up the wider cryptocurrency market. Bitcoin dropped from $67,367 to $66,016 and has only partially bounced back since then. Other major cryptocurrencies, like Ether, BNB, Solana, and XRP, have also experienced similar declines.
Footnote: Stablecoins are cryptocurrencies designed to maintain a stable value, typically pegged to a fiat currency like the US dollar. They help provide stability in the often unpredictable world of cryptocurrencies.
