Tether’s Illicit Financial Practices Revealed

03/04/2023 22:26 • Blockchain Briefs • 113 views

According to reports, according to the Wall Street Journal, the stable currency issuer Tether opened bank accounts through forged documents and shadow intermediaries. In 2018, Tether used bank accounts opened in the names of senior executives of several companies and fine-tuned the names of these companies to access the global financial system.

Foreign media: Tether used forged documents and shell companies to open bank accounts

Analysis based on this information:

The recently surfaced report by the Wall Street Journal unveils some alarming details regarding the stable currency issuer, Tether, and its financial practices. According to the report, Tether had opened bank accounts using forged documents and undisclosed intermediaries. In 2018, the company allegedly used bank accounts registered in the names of senior executives of several shell companies and altered their names to access the global financial system.

Tether is a cryptocurrency pegged to the US dollar, which means that for every Tether token, there should be an equivalent US dollar deposit in reserve. The company claims that it has enough collateral to back every token it issues. However, the recent revelations raise doubts about the legitimacy and transparency of Tether’s operations.

The report suggests that Tether might have used these illicit practices to bypass regulatory authorities to access the global financial system. The process of creating shell companies and using them as intermediaries through which to access banking services is a common tactic used by money launderers and other criminal organizations. Tether’s practices also indicate a lack of accountability and transparency, further raising suspicions about its operations.

The report underscores the need for regulatory oversight and transparency in the cryptocurrency market. Cryptocurrencies have gained widespread acceptance, and their use has grown exponentially in recent years. However, the lack of regulation has made it difficult for authorities to monitor and control the market. The absence of oversight has also been a hindrance to the mainstream adoption of cryptocurrencies.

In conclusion, Tether’s illicit financial practices have raised serious concerns about the legitimacy and transparency of its operations. The company’s use of shadow intermediaries and forged documents to open bank accounts indicates a lack of accountability and transparency. The report highlights the need for regulatory oversight and transparency in the cryptocurrency market to ensure that such practices do not go unchecked.

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Tether’s Illicit Financial Practices Revealed

Foreign media: Tether used forged documents and shell companies to open bank accounts

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