Tether's CTO says it's old news as the justice Department reexamines allegations of fraud against its top executives

Federal prosecutors in Washington warned top Tether officials last year that they could be charged for allegedly defrauding banks used to transfer cash, Bloomberg reported on Oct. 31. But after months of legal wrangling, the case has been turned over within the department, according to people familiar with the matter. Damian Williams, the U.S. attorney in Manhattan, took over the investigation in recent weeks and requested anonymity to discuss the confidential case. Prosecutors in Washington examined whether Tether executives opened any bank accounts under false pretenses, such as concealing that cash was tied to cryptocurrency. Officials are considering the so-called theory of control, under which executives can be charged with fraud if they make false statements. However, such a case would face potential legal uncertainties, people familiar with the matter said. The unusual decision to move the investigation so late in the process, according to former federal prosecutors, underscores the uncertainty in the legal landscape behind the fast-moving digital currency. In response, Tether CTO Paolo Ardoino wrote, "Bloomberg is bringing back old news from 2018." Tether had published an article on July 26, 2021, alleging that Bloomberg had published an article based on unnamed sources and allegations from years ago in an apparent attempt to attract clicks. The article follows a pattern of repackaging old claims as "news". Continued vilification won't change Tether's determination to remain a community leader. Tether regularly engages in open dialogue with law enforcement agencies, including the U.S. Department of Justice, as part of its commitment to collaboration, transparency and accountability.