From Futurism · Joe Wilkins · · 1m 20s
DOJ seizes Tether's bank accounts in crypto fraud probe
The stablecoin giant's accounts were frozen after an unlicensed payment processor allegedly ran a massive scam.
In brief
The stablecoin giant's accounts were frozen after an unlicensed payment processor allegedly ran a massive scam. Tether, despite being crypto's most trusted stablecoin, remains entangled with sketchy financial infrastructure and fraudulent intermediaries. Originally reported by Futurism.
Quick answers
- What is Tether?
- Tether is a stablecoin, a digital currency designed to maintain a stable value tied to the US dollar exchange rate. It's considered crypto's gold standard.
- What is the key takeaway from DOJ seizes Tether's bank accounts in crypto fraud probe?
- Tether, despite being crypto's most trusted stablecoin, remains entangled with sketchy financial infrastructure and fraudulent intermediaries.
DOJ seizes Tether's accounts
The US Department of Justice has frozen millions of dollars from bank accounts and crypto wallets linked to Tether Limited, the issuer of the stablecoin Tether.
What is Tether?
Tether is a stablecoin, a digital currency designed to maintain a stable value tied to the US dollar exchange rate. It's considered crypto's gold standard.
Unlicensed processor ran scam
An unlicensed payment processor called Capstone allegedly posed as an IT firm to banks like Wells Fargo and JPMorgan Chase while running a fraud scheme.
Capstone scammed elderly victims
Capstone employees allegedly impersonated FBI agents to defraud elderly people, then converted their stolen money into cryptocurrency.
Tether claims it's a victim
Tether says it was merely a customer of EQIBank, an offshore firm that handled its money through Capstone, and had no knowledge of the fraud.
“no knowledge of the fraudulent conduct by Capstone alleged by the DoJ”
Tether's Singapore bank deal failed
Tether offered to invest in EQIBank if it could secure a bank account with Singapore's Development Bank, but the deal fell through before the FBI investigation exposed everything.
“DBS has never had appetite for association with illicit funds or inappropriate dealings”
The headline
Tether, despite being crypto's most trusted stablecoin, remains entangled with sketchy financial infrastructure and fraudulent intermediaries.
