According to the Wall Street Journal, the United States Justice Department is carrying out a criminal investigation into Tether, which is the issuing company of the USDT stablecoin.
“The authorities are investigating possible violations of anti-money laundering and sanctions regulations,” says the prestigious newspaper United States.
It is worth clarifying that the Wall Street Journal, so far, has not released official evidence about the incident, but rather claims to rely on “people familiar with the matter.”
Quickly, Paolo Ardoino, the CEO of Tether, came out to refute these versions.
The businessman wrote on his social network account X:
“As we told the WSJ, there is no indication that Tether is under investigation. The WSJ is regurgitating old rumors. Final point.
Paolo Ardoino, CEO of Tether,
Portal journalists Investing They say they have contacted a spokesperson for the U.S. Attorney’s Office in Manhattan, who declined to comment.
Given these comings and goings with information, the market increased the feeling of panic and many investors got rid of their positions in bitcoin (BTC) driving down the price, by simple law of supply and demand.
The following graph, provided by TradingViewshows the BTC price in the last 24 hours. In this period it has fallen 1.74% and, as can also be seen in the CriptoNoticias Price Calculator, it is trading for $66,973.
Some readers may wonder: What does what happens to Tether have to do with the price of bitcoin? The connection lies in the weight that USDT has in the cryptocurrency ecosystem.
USDT is the most important stablecoin on the market and the third largest crypto asset by capitalization, with a value of approximately $120 billion.
Its importance is not limited to its volume; Being a stable currency (its price is equal to that of the US dollar), has become the fundamental pillar of transactions on numerous exchanges and cryptocurrency platforms.
A possible government sanction against Tether could destabilize this ecosystem. Being an asset widely used to maintain value in dollars without having to leave the cryptocurrency market, investors use it to protect themselves in times of high volatility.
If USDT were to lose credibility or come under severe restrictions, many of those funds might not find immediate shelter. Uncertainty and fear of illiquidity would create the perfect environment for a massive sell-off in other assets, especially bitcoin, which puts downward pressure on its price.
This type of event could be considered a “black swan.” for the cryptocurrency market. A black swan is an unforeseen event that has a significant impact on the market and alters investors’ perception of risk.