Cryptocurrency stablecoin Tether is at the center of a scandal — here’s why

Journalists of the American news outlet Bloomberg reported that the U.S. Department of Justice has resumed its investigation into the Tether case, where the stablecoin developers are accused of bank fraud. According to Tether representatives, this information is false, and Bloomberg is deliberately manipulating readers.

According to Bloomberg, the Manhattan prosecutor’s office is currently investigating the Tether case, which is investigating whether the stablecoin team has actually illegally cooperated with banking institutions. According to Bloomberg’s anonymous sources, one of the employees associated with Tether’s payment providers pleaded guilty. However, this information remains unconfirmed at this time.

Some members of the crypto community were surprised that the stablecoin case was transferred to federal prosecutors in Manhattan, as agencies rarely transfer investigations to other authorities. As Bloomberg emphasized, the Manhattan office’s experience in tracking illegal banking and cryptocurrency transactions will help the DOJ resolve this case faster.

In turn, on the official website of Tether, representatives of the stablecoin said that the company regularly maintains an open dialog with the authorities and complies with the law. Regarding the investigation update, Tether called the information about it a hoax. «Bloomberg journalists have proven time and time again that they are desperate to write news about an industry they simply do not understand. Their latest attempt to tarnish the reputation of Tether, one of the most significant participants in the crypto industry, is yet another example of Bloomberg’s ignorance. Journalists are publishing old news that is not true,» Tether emphasized.