Tether’s Response to “Front Company” FUD Allegations

In its news published on March 3, the WSJ claimed that in 2018, Tether established a network of forgery, shell companies and shadow banks in order to reach the banking system, and violated many ethical and legal rules. Many companies have used shell companies, various illegal intermediaries and fraudulent transaction submissions to gain access to the global banking system. Tether and Bitfinex have managed to open at least nine different bank accounts with Crypto Capital Crop, a shadow bank that holds Tether funds, and other companies.

In a document purportedly owned by one of the Tether co-founders, Stephen Moore, the WSJ claims there is various evidence that a major Tether investor in China is trying to circumvent the banking system by forging documents for deposits and withdrawals.

Tether, in a statement published on its official website the same day, stated that the WSJ’s claims do not reflect the truth, and that Bitfinex and Tether have extremely qualified compliance standards. Tether also stated that it cooperates with the US Department of Justice (DOJ) on a voluntary basis on money laundering, terrorism and illegal actors. On the other hand, Tether CEO Paolo Ardoino, in a statement on his official social media account, compared WSJ to a clown and criticized the agency, stating that its news contained a lot of lies and false information.

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