Tether strikes at WSJ over ‘stale allegations’ of faked documents for bank accounts

The institution down stablecoin Tether (USDT) has rebuffed a study by The Wall Street Journal (WSJ) claiming it had ties to entities that faked documents and utilized ammunition companies to support entree to the banking system.

On Mar. 3 the WSJ reported connected leaked documents and emails purportedly revealing that entities tied to Tether and its sister cryptocurrency speech Bitfinex faked income invoices and transactions and hid down 3rd parties successful bid to unfastened slope accounts they different whitethorn not person been capable to open.

In a Mar. 3 statement, Tether called the findings of the study “stale allegations from agelong ago” and “wholly inaccurate and misleading,” adding:

“Bitfinex and Tether person world-class compliance programs and adhere to applicable Anti-Money Laundering, Know Your Customer, and Counter-Terrorist Financing ineligible requirements.”

The steadfast went connected to accidental that it was a “proud” spouse with instrumentality enforcement and “routinely and voluntarily” assists authorities successful the United States and abroad.

Tether and Bitfinex main exertion officer, Paolo Ardoino, tweeted connected Mar. 3 that the study had “misinformation and inaccuracies” and insinuated the WSJ were clowns.

I'm astatine the PlanB day successful #lugano
So overmuch vigor and radical excited to speech astir #Bitcoin
While I was connected on signifier I heard immoderate clown honks, beauteous definite was WSJ.
As ever ton of misinformation and inaccuracies. Poor guys, indispensable beryllium hard beryllium them but request amended media.

— Paolo Ardoino (@paoloardoino) March 3, 2023

Cointelegraph contacted Tether and Binfinex for remark connected the study and their connection but did not person a effect by the clip of publication.

WSJ study claims Tether and Bitfinex obscured itself

The WSJ’s study outlines — done its reported reappraisal of leaked emails and documents — Tether and Bitfinex’s evident dealings to enactment connected to banks and different fiscal institutions which, if lost, would beryllium “an existential threat” to their concern according to a suit filed by the brace against Wells Fargo bank.

One of the leaked emails suggests the firm's China-based intermediaries were attempting to “circumvent the banking strategy by providing fake income invoices and contracts for each deposit and withdrawal.”

Screenshot of header from Wall Street Journal. Source: Wall Street Journal

There were besides accusations successful the study that Tether and Bitfinex utilized assorted means to skirt controls that would person restricted them from fiscal institutions, and had links to a steadfast that allegedly laundered wealth for a United States-designated violent organization, among others. 

Meanwhile, a idiosyncratic acquainted with the substance besides told the WSJ that Tether has been nether probe by the Department of Justice (DOJ) headed by the U.S. Attorney's Office for the Southern District of New York. The quality of the probe could not beryllium determined.

Related: Silvergate closes speech network, releases $9.9M to BlockFi

Tether has faced aggregate allegations of wrongdoing implicit the past fewer months and precocious had to downplay a abstracted WSJ study successful aboriginal February that claimed four men controlled astir 86% of the steadfast since 2018.

It likewise had to combat what it called “FUD” (fear, uncertainty, and doubt) from a December 2022 WSJ study concerning its secured loans and subsequently pledged to halt lending funds from its reserves.