Tether has been facing criminal charges in the US due to alleged bank fraud. There have been reports on how Tether has been issuing new tokens, but they don’t have the securities for that. It has led to serious allegations on the company, and the government has been looking actively into it. The Department of Justice is also looking into the fact if Tether has undisclosed information with the banks. As of now, things don’t look that good for the token, and it could go downhill from here on.
Tether’s growing problems
Initially, the case of criminal acts has now turned into bank fraud for Tether. According to reports, Tether has failed to disclose that its transactions have been liked to crypto. This, added to the fact that they have been issuing new tokens without any fundamental underlying asset, is really problematic. The Department of Justice has not given any solid information on what has been happening or any development in the case.
Tether is one of the most used tokens right now. Being the third-largest cryptocurrency with the fact that it is used mostly for buying other tokens makes it really important. But with all the government authorities looking into the token, Tether could even be banned. In the past, it has paid $18.5 million to settle claims that it neither accepted nor denied. The stablecoin market could even become destabilized in case Tether is banned. If you have USDT, then it is recommended to convert it into some other dollar-pegged stable coin like DAI or USDC.
What are your thoughts on Tether facing criminal charges due to bank fraud? And do you think that the government could ban the token? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.