March 28, 2023

Tether Hits Back at WSJ’s Allegations of Falsifying Documents

Tether, the leading stablecoin issuer, has strongly refuted allegations made by The Wall Street Journal (WSJ) that it falsified documents and shell companies to open bank accounts about four years ago. The WSJ published a report on Friday, citing emails and documents it received from Stephen Moore, one of the owners of Tether Holdings Ltd.

The report claimed that Tether and its affiliates falsified invoices and contracts in late 2018 when they lost access to the global banking system. The faked documents allegedly allowed them to create new bank accounts and continue operating their business.

In response, Tether has slammed the WSJ for publishing “baseless and unfounded allegations” and accused the media outlet of “relying on unverified documents and cherry-picked quotes to support their narrative.”

Tether also pointed out that the allegations are not new and have been thoroughly investigated by law enforcement agencies in the past. The company said it has cooperated fully with all investigations and has not been charged with any wrongdoing.

“Tether has always been transparent about its operations and has never engaged in any illegal or unethical activities,” the company said in a statement. “We will vigorously defend ourselves against these false allegations and will take all necessary legal action to protect our reputation.”

The latest allegations come at a time when Tether is already facing scrutiny from regulators and lawmakers over its role in the cryptocurrency market. The stablecoin, which is pegged to the US dollar, has become a popular choice for traders and investors due to its stability and liquidity.

However, critics have raised concerns about Tether’s lack of transparency and its close ties to Bitfinex, a cryptocurrency exchange that has also faced legal challenges in the past.

Despite the controversy, Tether remains one of the most widely used stablecoins in the cryptocurrency market, with a market capitalization of over $62 billion.

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