The company behind Tether (USDT) has rejected a report from The Wall Street Journal that claimed Tether was using falsified documents and shell companies to protect the banking system.
On March 3, the WSJ reported in leaked documents and emails that entities Tether and its sister company Bitfinex reported falsified sales and commodity transactions and hid them behind third parties to open bank accounts they could not otherwise open. .
In a March 3 statement, Tether called the report’s conclusions “long outdated allegations” and “completely inaccurate and misleading,” adding:
“Bitfinex and Tether have world-class compliance programs and adhere to applicable anti-money laundering, consumer awareness and hate-terror financing law requirements.”
The company added that it is “proud” to work with security forces and “routinely and voluntarily” assist US and foreign authorities.
Tether and Bitfinex CTO Paolo Ardoino on March 3 shot down the report as containing “misinformation and inaccuracies” and implied that the WSJ was paying journalists.
I’m at the PlanB anniversary in #lugano. So much energy and people are excited to talk about #Bitcoin. While on the stage I heard some funny sounds, and I know quite well the WSJ. As always, they spew out tons of misinformation and negligence. It must be difficult for poor people, but they need better means.
Tether and Bitfinex told Cointelegraph that they have no further comment beyond the public letter.
The WSJ report claims that Tether and Bitfinex have gone into hiding
The WSJ article outlines — through a review of leaked emails and documents — it appears Tether and Bitfinex are trying to stay connected to banks and other financial institutions that, if severed, would remain an “existential threat” to their business, according to the lawsuit filed. by two against the Wells Fargo bank.
One of the e-mails suggested that the firm was based in China trying to “circumvent the banking system by providing fake bills of sale and contracts for every deposit and withdrawal.”
The report also accused Tether and Bitfinex of using various tools to control the powers that restricted those financial institutions, and of having ties to a company that laundered money for a designated terrorist organization, among other things.
Separately, a family member told the WSJ that Tether had been questioned by the Department of Justice in an investigation led by the US Attorney’s Office for the Southern District of New York. The reason for the investigation could not be determined.
Tether has faced multiple allegations of wrongdoing in recent months and recently reported in a separate WSJ story in early February that claimed four people controlled 86% of the firm as of 2018.
Similarly, he had to fight the “FUD” (fear, uncertainty, and uncertainty) from a WSJ report last December about his collateral loans, and later vowed to stop lending.
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