The Wall Street Journal claims that stablecoin issuer Tether has used bank accounts opened with false documents in the past. What do these weighty claims about the altcoin project mean?
Heavy claims for this altcoin from WSC
The Wall Street Journal reported on Friday that Tether used bank accounts on behalf of executives of various companies to maintain its access to the global financial system in 2018, changing the names of these companies slightly. According to the report, Tether, the company behind the world’s largest stablecoin, gained access to bank accounts through forged documents and intermediaries.
The report claims that Crypto Capital Corp., a ‘shadow bank’ that held Tether funds before it was shut down by authorities in 2018, and sister companies Bitfinex and Tether, were able to open at least nine new bank accounts for Asian shell companies in October 2018. pointed to the others. Meanwhile, Paolo Ardoino, chief technology officer of altcoin project Tether, tweeted Friday afternoon that the WSJ report contains “a ton of misinformation and inaccuracies” without giving details.
“There are so many cat-and-mouse tricks that everyone should take advantage of!”
According to the Wall Street Journal, an email seen by Tether Holdings co-owner Stephen Moore opposed the use of counterfeit bills of sale, saying, “I wouldn’t want to discuss any of the above in a potential fraud/money laundering case.” The Journal cites a broker who trades USDT in China.
The report also cited a recording of a conversation with former Tether executive Phil Potter posted on YouTube by Bitfinexed in 2017. “We’ve had banking problems in the past,” Potter said in the recordings. We’ve always been able to get around it or deal with it, open new accounts. “There are a lot of cat-and-mouse tricks that everyone in the Bitcoin industry should take advantage of,” he said.
Cryptocurrency companies have traditionally had trouble securing banking access. Tether in particular has had a large number of bank accounts over the past few years, with some banks closing the accounts of stablecoin issuers. The Wall Journal report came the day after it came under intense scrutiny as crypto-friendly bank Silvergate announced that it would need to re-declare its financial statements and would not meet the deadline for submitting its annual report. Major clients suspended ties with Silvergate, and the stock price plummeted. As you follow on Kriptokoin.com, in recent months, federal regulators have warned banks that their dealings with crypto may invite risk.
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