Tether executives are facing a potential criminal case on allegations they might have participated in a bank fraud, according to Bloomberg.
- The investigation by the Justice Departments seeks to uncover whether there was a cover-up in Tether’s transactions linked to crypto in its early years.
- Stablecoins have been under scrutiny from the regulators over concerns that the tokens are linked to financial instability and money laundering.
- Tether affiliates including Bitfinex agreed to pay $ 18.5 million in claims that the firm lied that each token was backed by one dollar when they had no banking in 2017.
Tether tokens are used to trade bitcoin and currently, there are $62 billion worth of tethers in circulation.
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