The U.S. Treasury is considering sanctions on Tether

BlockBeats news, on October 26, WSJ reported that the U.S. Treasury Department has considered imposing sanctions on Tether, the issuer of the stablecoin USDT. According to people familiar with the matter, the federal government is investigating whether the cryptocurrency company Tether may have violated sanctions and anti-money laundering regulations.

The criminal investigation is led by prosecutors from the U.S. Attorney's Office in Manhattan, focusing on whether USDT is used by third parties to fund illegal activities such as drug trafficking, terrorism and hacker attacks, or to launder related proceeds.

At the same time, the U.S. Treasury Department is considering imposing sanctions on Tether because USDT is widely used by individuals and groups sanctioned by the United States, including the terrorist organization Hamas and Russian arms dealers. Sanctioning Tether will prohibit Americans from doing business with sanctioned entities.