The US Department of Justice has launched an investigation into stablecoin company Tether, according to a new report.
A criminal investigation into the company and its dollar-pegged stablecoin USDT is currently underway, led by the US Attorney’s Office in Manhattan, according to the Wall Street Journal.
The Justice Department is investigating “possible” violations of sanctions and anti-money laundering rules, according to people familiar with the matter.
Tether CEO Paolo Adrino responded to the news, Reuters reported, saying the company has seen “no indication” that any investigation is underway.
The Wall Street Journal report led to a minor unpeg for USDT, with the currency designed to stay at $1 now trading at $0.9993 at press time.
USDT is the largest stablecoin on the market, with a market capitalization of $119 billion.
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