A new fraud investigation has been launched by the US Department of Justice regarding the Tether company, which has had many problems with the US authorities in the past years and reached an agreement with the New York attorney general’s office in February.
According to the news in Bloomberg, US Department of Justice officials are investigating whether Tether company, the largest stablecoin USDT issuer, was involved in a fraud event that took place in the past years.
According to the report, authorities are investigating whether Tether concealed that its transactions with banks were cryptocurrency-related. Three officials, who provided information on the subject but did not want their names to be disclosed because the process has just begun and confidentiality continues, stated that the investigation covered the years when Tether was first established. It was also stated that an official letter was sent from the Ministry of Justice (DoJ) to Tether, announcing that an investigation was launched against them.
It is not clear which specific event or institution the Ministry of Justice is investigating. Tether has not yet made an official statement on the subject.
Activities in New York had come to an end.
As it will be remembered, Tether has been facing accusations for years that the USDTs it issued were not fully supported. Bitfinex exchange, Tether’s ‘sister company’, was also getting its fair share of accusations.
Finally, the New York attorney general’s office brought very serious charges against both companies, and “Bitfinex and Tether companies have covered a huge financial loss by acting carelessly and unlawfully in order to maintain their own systems.” had commented.
Both companies agreed with the attorney general’s office to pay a penalty of 18.5 million dollars, and at the end of the agreement, the companies’ activities in New York were terminated.