Tether accused Bloomberg of spreading old news to grab headlines, after the US business network published a report last week mentioning that the US Department of Justice (DoJ) reopened an investigation into Tether related to bank fraud.
In a blog post, Tether said that Bloomberg “is desperate for attention in an industry that they just do not understand.” It added that the outlet had dedicated itself to “recycling old news that isn’t even factual.”
Bloomberg wrote Thursday, Oct. 31, that a new DoJ team was investigating whether executives of stablecoin Tether (USDT) had committed a crime. The publication said federal prosecutors from Manhattan were leading the investigation.
According to the report, federal prosecutors in Washington had warned Tether’s top executives “that they could be charged for allegedly deceiving banks they used to move cash,” sources familiar with the case revealed. However, the case was transferred within the department and has been frozen until now.
“Incompetent Journalism and Inability”
In its response to Bloomberg, Tether said the Justice Department investigation was first opened in November 2018 and continued over the following years. Since then, the company has been collaborating with law enforcement globally to clarify the situation, Tether said.
It indicated that the story published by Bloomberg contained inaccurate events and that many of them had also occurred with its “sister company Bitfinex”, Tether said. "This represents yet another example of their incompetent journalism and inability to seperate fact from falsity."
The article published by the WSJ on August 27 quoted statements from the former head of internet compliance at the Securities and Exchange Commission, John Reed Stark. The then-official pointed out that Tether needed “an audit akin to a corporate colonoscopy” that would allow knowing its true capital reserves.
According to the article’s authors, Jean Eaglesham and Vicky Ge Huang, instead of conducting a full audit, Tether had simply hired an auditing firm to “snapshot” certify its reserves and liabilities.
Unsurprisingly, Tether defended itself and said that the Treasuries backing its balance sheet were not unsafe assets. It also denied that the business was not profitable, as the article suggested, and countered that perhaps the WSJ confused Tether with some of its rivals.
Sourced from dailycoin.com.
Written by
by Santiago Contreras on 2022-11-02 15:13:44.
