The U.S. federal government is investigating Tether, a prominent cryptocurrency company, for potential violations of sanctions and anti-money laundering regulations. The criminal probe is being led by prosecutors from the U.S. Attorney's Office in Manhattan. They are examining whether Tether's cryptocurrency, also known as USDT, has been used by third parties to fund illegal activities such as drug trafficking, terrorism, and hacking, or to launder proceeds from these activities.
The U.S. Treasury Department is also considering imposing sanctions on Tether. Due to its stable value pegged to the U.S. dollar, USDT has become a focal point for federal regulators and law enforcement agencies. Unlike more volatile cryptocurrencies, Tether's consistent value makes it an attractive alternative in regions where U.S. dollar transactions are restricted by American authorities.
