Tether denied reports on March 3 that suggested it was involved in external attempts to obtain bank accounts through forged documents.
The WSJ claims that the Tether contractor signed fake documents
On March 3 Wall Street Journal claimed that “Tether Holdings and [a] hidden identities of an associated crypto broker,” according to documents he obtained.
This article cites communications from the owner of Tether Holdings Ltd. Stephen Moore, who suggest that a major Tether trader based in China used fake invoices and contacts to obtain bank accounts after being locked out of the global banking system.
The Wall Street Journal said Moore advised the other side to stop those actions. Moore is understood to have expressed concern about the risk of using false documents and concerns about disputes over issues “in the event of potential fraud/money laundering”.
However, the fake documents were signed by Moore, according to the report. As such, at least one Tether executive is alleged to be complicit in the commission of the fraud.
Tether dismisses WSJ claims as ‘completely inaccurate’
Although Tether did not address the specific claims in the article, he respond to claims in general, calling the article “completely inaccurate and misleading.”
The company added that it maintains ongoing compliance programs and works with various law enforcement agencies, including the US Department of Justice (DOJ). He said he would continue to provide his stablecoin services despite the “rogue attacks”.
Tether CTO Paolo Ardoino commented on the matter on Twitter, saying the report contained “a ton of misinformation and inaccuracies.” He also said he heard “clown screams” while on stage at a conference, and attributed the event to the Wall Street Journal — possibly meaning the publication of the article led to audience jeers.
The Wall Street Journal has criticized Tether on numerous other occasions. In February, it was alleged that a small group of individuals once controlled most of Tether’s shares. Last summer, Tether was said to have been at risk of bankruptcy and also claimed that hedge funds had USDT for short. The newspaper also criticized the transparency of the company’s reserves and credit activity. Tether responded to many of these claims.
Despite frequent criticism, Tether’s USDT token remains the largest stablecoin. It currently has a market cap of $71 billion and a 24-hour volume of $43 billion.
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