Tether Responds to Allegations of Fake Documents, Says Reports Wholly Inaccurate and Misleading

Tether is pushing back against a report that alleges those backing its stablecoin project falsified documents to remain connected to the banking world.

In a new blog post, Tether refutes a story published by the Wall Street Journal that alleges backers of its widely traded stablecoin and its crypto exchange Bitfinex used falsified documents and shell companies to open bank accounts.

“The Wall Street Journal’s report about stale allegations from long ago is wholly inaccurate and misleading. Bitfinex and Tether have world-class compliance programs and adhere to applicable Anti-Money Laundering, Know Your Customer, and Counter-Terrorist Financing legal requirements.

Bitfinex and Tether are proud partners of global law enforcement, and routinely and voluntarily assist the United States Department of Justice and other law enforcement organizations across the world in preventing money laundering, terrorism, and other crimes by bad actors.

These unfair attacks will not distract us from continuing with those efforts and offering the most liquid and reliable stablecoin experience, which the market has clearly recognized by making us the leaders in the industry.”

The Wall Street Journal reports that in 2018, those behind Tether allegedly turned to falsified documents and shell companies to ensure they were not blocked by the traditional financial system and were able to continue to make deposits and withdrawals.

One email reportedly sent by Stephen Moore, an owner of Tether Holdings Ltd, said a major Tether trader in China was attempting “circumvent the banking system by providing fake sales invoices and contracts for each deposit and withdrawal,” per the report.

According to the report, Moore also sent an email saying that they should stop using fake sales invoices and contracts.

“I would not want to argue any of the above in a potential fraud/money laundering case.” 

The news publication also reported that Tether is currently under investigation by U.S. Justice Department and the Manhattan U.S. Attorney’s Office.

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