Evidently the paywalled Bloomberg said that Tether is being investigated by the DoJ.
- The U.S. Department of Justice is investigating Tether for a possible offense conducted years ago, the outlet reported citing people with knowledge of the matter
- Bitcoin fell close to $1000 on the report before rebounding.
- Tether administers the USDT, the crypto market’s largest stablecoin, has long been dogged by accusations of murky banking relationships
- Tether and its sister exchange Bitfinex settled an investigation by the New York Attorney General’s Office (NYAG) into whether the stablecoin issuer was covering up the loss of nearly $1 billion in customer funds earlier this year.
- In the settlement agreement, the NYAG said Tether used various banks, but was suspended from some, including Wells Fargo, for unspecified reasons.
Wells Fargo has been restricted from many ventures after being busted for making millions of false accounts. The DoJ has also been investigating over possible market manipulation.
Bitcoin after the news broke move back above $40,000 before giving up much of the gains in after hours trading. Amazon denied a report that it would start accepting cryptocurrency for payments this year, according to Reuters and Bloomberg.