Tether Executives Facing Criminal Bank Fraud Charges: Report

26 July 2021

Executives from Tether are potentially facing a criminal probe into bank fraud, Bloomberg reported Monday.

  • The U.S. Department of Justice is investigating Tether for a possible offense conducted years ago, the outlet reported citing people with knowledge of the matter.
  • The price of bitcoin dipped on the news, falling about $1,000 shortly after the report came out.
  • A request for comment was not immediately returned by Tether.
  • Tether, which administers USDT, the crypto market's largest stablecoin, has long been dogged by accusations of murky banking relationships.
  • Tether and its sister exchange Bitfinex settled an investigation by the New York Attorney General's Office (NYAG) into whether the stablecoin issuer was covering up the loss of nearly $1 billion in customer funds earlier this year.
  • In the settlement agreement, the NYAG said Tether used various banks, but was suspended from some, including Wells Fargo, for unspecified reasons.
  • Bloomberg previously reported in 2018 that the DOJ was investigating whether Tether and Bitfinex were pumping bitcoin's price.

This is a developing story and will be updated.

UPDATE (July 26, 2021, 14:41 UTC): Updated with additional context.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Read more

Tether Stablecoins USDT