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US Probes Tether Over Alleged Sanctions Violations and Money Laundering Links Amid CEO’s Denial

US authorities are investigating Tether over alleged violations of anti-money laundering laws and sanctions, with Tether pushing back against these claims as speculative.

Author

Steven Walgenbach
October 26, 2024

Breaking Crypto Stories

Here are the top stories today:

  • US Prosecutors Are Investigating Tether, Us Treasury Weighs Potential Sanctions: WSJ

  • SOL, XRP ETF Filings Are ‘Call Options’ on Trump Win: Bloomberg Analyst

  • Bitcoin ETF Demand Hits 6-Month High While Futures Volumes Remain ‘Subdued’

  • Ripple Labs Files Form C in Ongoing SEC Legal Battle

  • Thailand Crypto Market Shifting from Retail to Institutional Investing

  • Standing Up Against Crypto PACs: Rep. Summer Lee Calls for Fairness in Elections

Question of the Day

Will the meme coin supercycle happen before the end of the year?

US authorities are investigating Tether over potential anti-money laundering and sanctions violations, with Tether denying the claims and dismissing the reports as speculative.

  • The Manhattan US attorney’s office and the Treasury Department are probing Tether for alleged illicit use by sanctioned groups, including terrorist organizations.

  • If sanctions are imposed, US residents may be restricted from transacting with Tether.

  • Tether’s CEO and spokesperson deny these allegations, asserting cooperation with law enforcement to prevent misuse of its stablecoin.

ETF analyst Eric Balchunas suggests that the surge in alternative cryptocurrency ETF filings is speculative on a potential Trump victory, as it could bring a more crypto-friendly SEC chair, contrasting with the stricter stance under Biden.

  • Eric Balchunas links the recent increase in crypto ETF filings to expectations that a Trump victory could lead to a more libertarian SEC chair, promoting a pro-crypto regulatory stance.

  • Under the Biden administration, the SEC has taken a stringent regulatory approach, initiating numerous actions against crypto companies, whereas Trump has expressed ambitions to make the US a "crypto capital."

  • In 2024, crypto-related funds dominated ETF launches, with Bitcoin ETFs leading inflows, reflecting strong market interest in digital asset funds despite regulatory uncertainties.

Demand for spot Bitcoin ETFs has surged to a six-month high, driven by retail investors, while futures trading volumes remain subdued since Bitcoin’s last peak.

  • Spot Bitcoin ETF demand has spiked, reaching a 6-month high with significant net inflows, largely attributed to retail investor interest.

  • Bitcoin futures trading volume is subdued, at nearly half of March's peak levels, indicating lower activity and a shift towards basis and arbitrage strategies.

  • Since January, spot Bitcoin ETFs have accumulated $21.6 billion in inflows, with nearly 80% of assets managed by non-institutional investors, highlighting strong retail participation.

Ripple Labs has filed Form C to strengthen its defense in its ongoing legal dispute with the SEC, where the classification of XRP as a security is under scrutiny, potentially impacting broader cryptocurrency regulations.

  • Ripple Labs files Form C, aiming to clarify financial operations and support its stance in the SEC lawsuit over XRP’s classification.

  • The legal outcome may shape future crypto regulations, potentially affecting how digital assets are categorized in the US.

  • A ruling in Ripple’s favor could encourage crypto innovation, while an SEC victory may lead to stricter industry controls.

The Thailand crypto market is transitioning from retail to institutional investing, indicating a more mature and stable digital asset environment with increased growth opportunities.

  • Thailand’s crypto market shift toward institutional investors highlights growing maturity, driven by clear regulations and improved infrastructure.

  • Institutional involvement enhances market stability, reduces volatility, and fosters innovation in digital asset products.

  • As institutional capital integrates Thailand’s market with global finance, the country strengthens its role as a regional digital asset hub.

Rep. Summer Lee is calling for fair elections and stronger regulations to counter the influence of crypto PACs, aiming to balance innovation with electoral integrity.

  • Rep. Summer Lee warns that crypto PACs' financial power could threaten fair elections, advocating for more stringent regulations.

  • She emphasizes the need for transparency and accountability in both crypto funding and political campaigns.

  • Building a coalition, Rep. Lee seeks to protect democratic values by balancing the growth of digital assets with responsible oversight.

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