The U.S. Department of Justice has launched an investigation into the stablecoin company Tether, according to a new report.
A criminal investigation into the company and its dollar-pegged stablecoin USDT is underway, spearheaded by the U.S. attorney’s office in Manhattan, reports the Wall Street Journal.
The DOJ is investigating “possible” violations of sanctions and anti-money-laundering rules, according to people familiar with the matter.
The news has triggered a small de-peg for USDT, with the coin that’s designed to remain at $1 now trading at $0.9925 at time of publishing.
USDT is the largest stablecoin on the market, with a $119 billion market cap.
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