The U.S. Department of Justice has launched an investigation into the stablecoin company Tether, according to a new report.
A criminal investigation into the company and its dollar-pegged stablecoin USDT is underway, spearheaded by the U.S. attorney’s office in Manhattan, reports the Wall Street Journal.
The DOJ is investigating “possible” violations of sanctions and anti-money-laundering rules, according to people familiar with the matter.
Tether CEO Paolo Adroino has responded to the news, reports Reuters, saying the firm has seen “no indication” that any investigation is underway.
The Wall Street Journal’s report has triggered a small de-peg for USDT, with the coin that’s designed to remain at $1 now trading at $0.9993 at time of publishing.
USDT is the largest stablecoin on the market, with a $119 billion market cap.
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