Tether, the firm behind the popular USDT stablecoin, is facing new bank fraud allegations after a Wall Street Journal article suggested that a company executive had signed forged documents to obtain bank accounts.
Although Tether has denied the allegations and called the article “totally inaccurate and misleading,” these allegations are just the latest in a series of criticisms the company has faced in recent years.
WSJ claims that the Tether executive signed false documents.
According to the Wall Street Journal article, a major China-based Tether trader had used fake invoices and contacts to obtain bank accounts after being restricted from the global banking system.
The owner of Tether Holdings Ltd, Stephen Moore, reportedly advised the other party to stop those actions and expressed concerns about the risk of using false documents and concerns about discussing matters in a possible fraud/money laundering case.
However, the fake documents were allegedly signed by Moore, implying that at least one Tether executive is involved in enabling the fraud.
Tether denies the WSJ’s allegations as “totally inaccurate.”
Despite Tether has not addressed the specific claims in the article, the company has denied the allegations in general, and has stated that the article is “totally inaccurate and misleading.” Tether has also highlighted that it works with various enforcement agencies, including the US Department of Justice, and has assured that it will continue to provide its stablecoin services despite “unfair attacks”.
The Wall Street Journal has criticized Tether on many other occasions, including claims in February that a small group of people once controlled a majority of Tether’s shares. Furthermore, last summer, Tether was claimed to be at risk of insolvency and hedge funds were also claimed to have shorted USDT.
The newspaper has also questioned the transparency of the company’s reserves and lending activities. Despite these criticisms, Tether’s USDT token remains the largest stablecoin, with a market capitalization of $71 billion and 24-hour volume of $43 billion.
Tether is once again facing accusations of bank fraud, which has prompted a backlash from the crypto community. Although Tether has denied the allegations, these criticisms are just the latest in a series of questions the company has faced in recent years.
As cryptocurrency adoption continues to grow around the world, it is important that companies in the sector maintain high ethical and transparent standards to earn and maintain the trust of their customers and investors.
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