Tether Refuses FUD Forged Documents To Open Bank Account

Key Points:

• Tether officially denies the WSJ report of using fake documents and shell companies to gain access to banking services.
• The USDT issuer is committed to complying with legal and anti-money laundering regulations.

Tether, the largest issuer of stablecoins, called the Wall Street Journal report totally inaccurate and misleading. The WSJ report alleges the company used forged documents and shell companies to open bank accounts in 2018. The report said the company opened accounts in the names of executives from multiple companies and different companies. This has been done to continue to be part of the global financial system.

Furthermore, the report also claims that the leading stablecoin issuer and crypto exchange – Bitfinex, had at least nine bank accounts for shell companies in Asia as of October 2018. one of the shell companies is identified as Crypto Capital Corp, which is noted as a shadow bank. The shell company held some of Tether’s funds but was eventually shut down by authorities in 2018.

In addition, the report also cites one of the emails sent by Stephen Moore – one of the owners of Tether. The email states that a significant Tether trader in China is trying to bypass “the banking system by providing fake invoices and sales contracts for every deposit and withdrawal.” The Tether owner is said to have signed some forged documents but admits this is too risky. He further stated, “I do not wish to argue with any of the above in a potential fraud/money laundering case.”

“These unfair attacks will not distract us from continuing with those efforts and offering the most liquid and reliable stablecoin experience, which the market has clearly recognized by making us the leaders in the industry.”

The stablecoin issuer also states.

Paolo Ardoino, the chief technology officer of Tether, tweeted on Friday afternoon that the WSJ report contained a “ton of misinformation and inaccuracies,” without giving specifics.

Cryptocurrency companies often have difficulty securing banking access. Tether in particular has had several bank accounts over the past few years, with several banks having closed stablecoin issuer accounts.

In recent months, federal regulators have warned banks that their relationship with cryptocurrencies could pose risks.

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