Tether hits back at WSJ over ‘old allegations’ of fake bank account documents
The company behind stablecoin Tether (USDT) has denied a report from The Wall Street Journal (WSJ) that claims it had ties to entities that forged documents and used shell companies to maintain access to the banking system.
On March 3, the WSJ reported on leaked documents and emails that allegedly reveal that entities linked to Tether and its sister cryptocurrency exchange Bitfinex falsified sales invoices and transactions and hid behind third parties to open bank accounts they might not otherwise have been able to to open. .
In a March 3 statement, Tether called the report’s findings “old claims from a long time ago” and “completely inaccurate and misleading,” adding:
“Bitfinex and Tether have world-class compliance programs and comply with applicable anti-money laundering, know-your-customer and counter-terrorism laws.”
The firm went on to say it was a “proud” partner with law enforcement and “routinely and voluntarily” assists authorities in the United States and abroad.
Tether and Bitfinex chief technology officer Paolo Ardoino tweeted on March 3 that the report had “misinformation and inaccuracies” and insinuated that the WSJ was clowns.
Cointelegraph contacted Tether and Binfinex for comment on the report and their statement, but did not receive a response by the time of publication.
The WSJ report claims that Tether and Bitfinex cloaked themselves
The WSJ’s report — through its reported review of leaked emails and documents — outlines Tether and Bitfinex’s apparent dealings to stay in touch with banks and other financial institutions that, if lost, would be “an existential threat” to their operations, according to to a lawsuit filed by the couple against Wells Fargo bank.
One of the leaked emails suggests that the firm’s China-based middlemen attempted to “bypass the banking system by providing false sales invoices and contracts for every deposit and withdrawal.”
There were also allegations in the report that Tether and Bitfinex used various means to skirt controls that would have restricted them from financial institutions, and had links to a firm that allegedly laundered money for, among others, a US-designated terrorist organization.
Meanwhile, a person familiar with the matter also told the WSJ that Tether has been under investigation by the Department of Justice (DOJ) led by the US Attorney’s Office for the Southern District of New York. The nature of the investigation could not be determined.
Related: Silvergate shuts down exchange network, frees up $9.9 million for BlockFi
Tether has faced multiple allegations of wrongdoing in recent months and recently had to downplay a separate WSJ report in early February that claimed four men controlled roughly 86% of the firm since 2018.
It similarly had to fight what it called “FUD” (fear, uncertainty and doubt) from a December 2022 WSJ report on its secured loans and then promised to stop lending funds from its reserves.
