Janice R. Andrews
Cryptocurrency markets experienced a sharp reversal on Friday afternoon following The Wall Street Journal’s report of a U.S. Department of Justice investigation into Tether, a major stablecoin provider. The investigation reportedly centers on potential breaches of sanctions and anti-money laundering laws.
Tether (USDT), which maintains a one-to-one peg with the U.S. dollar, is a cornerstone of cryptocurrency trading infrastructure with its market capitalization exceeding $120 billion. The market impact was immediate, with Bitcoin retreating from near $69,000 to $66,500, before stabilizing around $66,800. This shift marked a dramatic turn from the day’s earlier upward trajectory.
Tether’s CTO Paolo Ardoino challenged the report’s validity on X, characterizing it as recycled allegations and denying any current investigation into the company.
The broader cryptocurrency market also felt the impact, with the CoinDesk 20 Index declining 2.3%, demonstrating how regulatory developments can swiftly influence market sentiment in the digital asset space.
