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Tether Disassociates Self from WSI Report, Claims it’s Incorrect

The Wall Street Journal (WSJ) reported on March 3nd that Tether Holdings and a connected cryptocurrency dealer had concealed identities by using fictitious documents. The WSJ provided documents that were used in the article as proof.

After the said report, the stablecoin provider Tether issued a statement denouncing the WSJ article as false and deceptive. When contacted for a comment, the company’s representative was quoted as saying that the company “does not tolerate any illegal or unlawful behavior” and has “strict policies and processes in place to guarantee that all entities using Tether comply with the relevant regulations and laws.”

This controversial WSJ article was claimed to have been centered on a chat between Stuart Hoegner, general counsel at Tether, and a representative of the affiliated cryptocurrency broker Digifinex. From the article, the CEO reportedly approached Hoegner for assistance in masking the identities of a few clients. Then, according to Hoegner, he proposed utilizing fictitious documents.

Tether, though, claims that the WSJ piece misrepresented the dialogue. Tether asserted in its statement that Hoegner had advised the Digifinex executive to stop using fake documents and expressed worries about the possibility of using them in a fraud or money laundering prosecution.

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Tether Insist on Transparency

The corporation has been completely open about its reserves, and Tether said that it regularly undergoes audits to confirm those reserves. While commenting on the situation, Tether said that it has “always been and will continue to be committed to transparency” and that it would keep working with authorities and other parties to ensure that laws and regulations are followed.

The WSJ article has raised concerns regarding Tether’s transparency and adherence to know-your-customer (KYC) and anti-money laundering (AML) laws. Tether’s reaction, however, makes it seem possible that the dialogue between Hoegner and the Digifinex executive was not precisely described in the report.

Analysts believe that because governments and regulators worldwide have expressed worries about the possible use of cryptocurrencies for criminal activities, the cryptocurrency industry has become a topic of intense scrutiny. According to Tether’s reaction to the WSJ article, the company abides by relevant laws and regulations and upholds transparency in its business practices.

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Brenda Collins

Brenda Collins is a seasoned crypto news writer with a deep passion for blockchain technology and its transformative potential. With years of experience in the industry, she has honed her skills in delivering concise and insightful analysis, making complex concepts accessible to a wide audience. Brenda's dedication to staying up-to-date with the latest developments in the crypto world ensures her readers receive accurate and timely information.

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