“Tether Investigation”

🟦Cryptocurrency prices dropped following a Wall Street Journal report that the U.S. is investigating Tether, the stablecoin issuer, for potential violations of sanctions and anti-money laundering regulations.

🟦Stablecoins are a type of cryptocurrency pegged to another asset, typically the U.S. dollar. With a market capitalization exceeding $120 billion, Tether (USDT) is the most widely used stablecoin.

🟦Earlier in the session, cryptocurrency prices had been rising, with Bitcoin (BTC) approaching the $69,000 level. However, after the Tether news, Bitcoin fell to a low, decreasing by nearly 2%. Shortly after the story emerged, Tether’s Chief Technology Officer Paolo Ardoino remarked that the WSJ was “recycling old noise,” adding that there are no signs Tether is under investigation.