Ethereum

JUST

Momentum

<h4><strong>The crypto market responded on October 25th after The Wall Street Journal (WSJ) <a href="https://www.wsj.com/finance/currencies/federal-investigators-probe-cryptocurrency-firm-tether-a13804e5" target="_blank" rel="noopener">released</a> what it referred to as an exclusive article. According to this report, the U.S. federal authorities are still investigating the stablecoin issuer. </strong></h4> 
<p>The article suggested that U.S. government agencies may investigate Tether’s illicit use. <span style="font-weight: 400;">Tether’s CEO, Paolo Ardoino, described the report as old noise. Let’s look at the crypto market and Tether’s response. Read on to get the details.&nbsp;</span></p> 
<h5><strong>Tether Under Scrutiny</strong></h5> 
<p><span style="font-weight: 400;">The WSJ report flagged prospects of criminal probes by the U.S. Attorney’s Office in the Southern District of New York. Some third parties allegedly involved Tether’s analytics for stablecoin in unlawful operations. Most of these investigations have taken several years to complete.</span></p> 
<p><span style="font-weight: 400;">The report refers to the U.S. Treasury Department, which has decided to freeze Tether because some people they banned used USDT.</span></p> 
<blockquote class="twitter-tweet"> 
 <p dir="ltr" lang="en">Exclusive: Crypto firm Tether is under federal investigation for possible violations of sanctions and anti-money laundering rules <a href="https://t.co/TuBoIyYBWA">https://t.co/TuBoIyYBWA</a></p> 
 <p>— The Wall Street Journal (@WSJ) <a href="https://twitter.com/WSJ/status/1849874432128340038?ref_src=twsrc%5Etfw">October 25, 2024</a></p>
</blockquote> 
<h5><strong>Tether Fires Back</strong></h5> 
<p><span style="font-weight: 400;">On its <a href="https://tether.io/news/tether-slams-wsjs-irresponsible-reporting-stands-by" target="_blank" rel="noopener">website</a>, Tether stated, “It is outrageous to claim that authorities associate Tether with crimes or sanctions evasion.” Tether’s Legal team keeps in touch with more than 145 legal agencies and helps recover millions of dollars linked to USDT’s use in illegal acts.</span></p> 
<p><span style="font-weight: 400;">Tether CEO Ardoino went on social media to claim that the problem is non-existent. He said, “As we said to WSJ, there is no sign that Tether is under investigation.” WSJ is regurgitating old noise. Full stop.”</span></p> 
<blockquote class="twitter-tweet"> 
 <p dir="ltr" lang="en">As we told to WSJ there is no indication that Tether is under investigation. WSJ is regurgitating old noise. Full stop.</p> 
 <p>— Paolo Ardoino <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f916.png" alt="🤖" class="wp-smiley" style="height: 1em; max-height: 1em;"><img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f350.png" alt="🍐" class="wp-smiley" style="height: 1em; max-height: 1em;"> (@paoloardoino) <a href="https://twitter.com/paoloardoino/status/1849876338573799912?ref_src=twsrc%5Etfw">October 25, 2024</a></p>
</blockquote> 
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p> 
<h5><strong>Market Reaction</strong></h5> 
<p><span style="font-weight: 400;">What the WSJ said had the effect of scaring the <a href="https://www.altcoinbuzz.io/?s=crypto+market" target="_blank" rel="noopener">crypto market</a>. When the news filtered in, the Bitcoin price dropped from $67,367 to $66,016. Ethereum and others followed the same pattern.</span></p> 
<blockquote class="twitter-tweet"> 
 <p dir="ltr" lang="en"><img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f6a8.png" alt="🚨" class="wp-smiley" style="height: 1em; max-height: 1em;"> BTC Momentum Check<br> <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f4c9.png" alt="📉" class="wp-smiley" style="height: 1em; max-height: 1em;"> <a href="https://twitter.com/hashtag/BTC?src=hash&amp;ref_src=twsrc%5Etfw">#BTC</a> dropped from $69K to $66.5K following <a href="https://twitter.com/hashtag/WSJ?src=hash&amp;ref_src=twsrc%5Etfw">#WSJ</a> report on DOJ/Tether probe</p> 
 <p>Key Points:<br> • DOJ investigating <a href="https://twitter.com/hashtag/Tether?src=hash&amp;ref_src=twsrc%5Etfw">#Tether</a> (USDT) <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f50d.png" alt="🔍" class="wp-smiley" style="height: 1em; max-height: 1em;"><br> • Focus: sanctions &amp; AML compliance<br> • <a href="https://twitter.com/hashtag/USDT?src=hash&amp;ref_src=twsrc%5Etfw">#USDT</a> market cap: $120B<br> • Tether CTO: “old noise”</p> 
 <p>Source: <a href="https://t.co/fPuWFzqMYn">https://t.co/fPuWFzqMYn</a></p> 
 <p>— BitTap (@BitTapGlobal) <a href="https://twitter.com/BitTapGlobal/status/1850781373621268649?ref_src=twsrc%5Etfw">October 28, 2024</a></p>
</blockquote> 
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p> 
<h5><strong>Is Tether Actually Under Investigation?</strong></h5> 
<p><span style="font-weight: 400;">Regulators have often scrutinized Tether. In 2021, the CFTC <a href="https://www.cftc.gov/PressRoom/PressReleases/8450-21" target="_blank" rel="noopener">determined</a> that Tether and Bitfinex broke trading laws and paid a $42.5 million penalty.</span></p> 
<p><span style="font-weight: 400;">Ripple’s CEO, Brad Garlinghouse, recently discussed Tether on a podcast and hinted that it could be a government target. Institutions and public figures have criticized Tether for some time.</span></p> 
<blockquote class="twitter-tweet"> 
 <p dir="ltr" lang="en">JUST IN: <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f1fa-1f1f8.png" alt="🇺🇸" class="wp-smiley" style="height: 1em; max-height: 1em;"> US Government launches investigation into <a href="https://twitter.com/search?q=%24USDT&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$USDT</a> crypto firm Tether! <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f30e.png" alt="🌎" class="wp-smiley" style="height: 1em; max-height: 1em;"></p> 
 <p>“The US Government Is Going After Tether. That Is Clear To Me.” – <a href="https://twitter.com/bgarlinghouse?ref_src=twsrc%5Etfw">@bgarlinghouse</a><br> <a href="https://t.co/HDexIBx4Vg">pic.twitter.com/HDexIBx4Vg</a></p> 
 <p>— Max | Crypto Attacks <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f40e.png" alt="🐎" class="wp-smiley" style="height: 1em; max-height: 1em;"> | <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f91d.png" alt="🤝" class="wp-smiley" style="height: 1em; max-height: 1em;"><img src="https://s.w.org/images/core/emoji/15.0.3/72x72/2764.png" alt="❤" class="wp-smiley" style="height: 1em; max-height: 1em;"> (@MaxCryptoAttack) <a href="https://twitter.com/MaxCryptoAttack/status/1850052631319970148?ref_src=twsrc%5Etfw">October 26, 2024</a></p>
</blockquote> 
<h5><strong>Conclusion</strong></h5> 
<p><span style="font-weight: 400;">The crypto market is waiting to see if any official actions will happen or if this is, as Ardoino says, “old noise.” No official has owned up to the claims in this report, and nobody has confirmed the details yet. The quick fall in significant crypto prices shows that even whispers of investigations can affect how people feel about the market. No matter how severe these claims are, Tether’s response shoots down the allegations with firm and unwavering statements. This is a clear example of market FUD (Fear, Uncertainty, and Doubt).</span></p> 
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<h6><strong>Disclaimer</strong></h6> 
<p>The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.</p> 
<p>The post <a href="https://www.altcoinbuzz.io/cryptocurrency-news/crypto-market-rattled-by-unverified-tether-investigation-report/">Crypto Market Rattled by Unverified Tether Investigation Report</a> appeared first on <a href="https://www.altcoinbuzz.io">Altcoin Buzz</a>.</p>

Crypto Market Rattled by Unverified Tether Investigation Report

Altcoin Buzz

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