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Tether (USDT) responds to report on using falsified documents to open bank accounts

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Tether (USDT) responds to report on using falsified documents to open bank accounts

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  • WSJ report alleges Tether of using falsified documents and shell companies to have access to banking services
  • Tether responds to the report by calling it misleading and inaccurate

Tether, the issuer of the largest stablecoin, has called the Wall Street Journal report “wholly inaccurate and misleading. The WSJ report accused the firm of using falsified documents and shell companies to open bank accounts in 2018. The report stated that the company had opened accounts under the names of executives from various companies. This was done in order to continue to be part of the global financial system.

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Moreover, the report also claims that the stablecoin issuer and the leading crypto exchange – Bitfinex, had at least nine bank accounts for shell companies in Asia in October 2018. One of the shell companies was identified as Crypto Capital Corp, which was noted as a shadow bank. The shell company held some of Tether’s funds but was eventually shut down by authorities in 2018.

Tether head reportedly acknowledges the risks

Additionally, the report also cited one of the emails sent by Stephen Moore – one of the owners of Tether holdings. The email stated that a major Tether trader in China was trying to bypass the “banking system by providing fake sales invoices and contracts for each deposit and withdrawal.” The Tether owner had reportedly signed some of the falsified documents but acknowledged that this was too risky. He had further stated, “I would not want to argue any of the above in a potential fraud/money laundering case”.

Speaking about the report, Tether stated,

“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”

The stablecoin issuer also stated that the “unfair attacks” by WSJ would not distract them from issuing the “most liquid and reliable stablecoin experience”. Moreover, Paolo Ardonio – CTO of Bitfinex and Tether – also spoke about the report on his social media platform. On Twitter, he said, “Love the obsession for Tether. I hope WSJ will not start asking Tether a rent. So far we lived rent free in their minds.”

Notably, the United States Department of Justice was investigating Tether’s executives for banking fraud, according to a 2021 report by Bloomberg. In response, the stablecoin issuer had stated the report of “repackaging stale claims”.


Priya is a freelance cryptocurrency writer at AMBCrypto. A student in business administration, Priya focuses on the latest developments in the cryptocurrency and blockchain technology space.
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