Cryptocurrency Surge Interrupted by Reports of U.S. Inquiry into Tether
A recent Wall Street Journal article reveals a U.S. investigation into Tether, causing a decline in cryptocurrency prices.
Cryptocurrency prices experienced a downturn on Friday afternoon following a report from the Wall Street Journal indicating that U.S. authorities are investigating Tether, the provider of the widely-used stablecoin, for alleged violations of sanctions and anti-money laundering laws.
Tether, with a market capitalization exceeding $120 billion, maintains its value relative to another asset, generally the U.S. dollar. In the early trading phase, Bitcoin approached $69,000, hinting at a potential challenge to cross the $70,000 mark by the weekend. However, after the news regarding Tether, Bitcoin's price plummeted to approximately $66,500, marking a nearly 2% drop within 24 hours. It later showed slight recovery to around $66,800. Additionally, the CoinDesk 20 Index, which tracks a broader market, reflected a decrease of 2.3% in the same period.
In response to the report, Tether's CTO, Paolo Ardoino, stated on X (formerly known as Twitter) that the Wall Street Journal was "regurgitating old noise," asserting that there were no indications of an ongoing investigation into Tether.
