According to the reports, world’s biggest stablecoin company Tether opened bank aссounts using fake documents.
Tether Used Fake Documents to Open Bank Accounts
The Wall Street Journal reported on Friday that Tether used bank aссounts on behalf of executives at various companies and slightly adjusted the names of those companies to maintain access to the global financial system in 2018. The report also mentions Crypto Capital Corp. According to the information provided by The Wall Street Journal, it is a “shadow bank” which held Тether funds before it was shut down in 2018. In addition, the report says that sister companies Bitfinex and Tether “were able to open at least nine new bank aссounts for shell companies in Asia” in October 2018. Tether spokespeople refused to immediately comment on the situation.
Tether’s Comments on the Report
The first comment on the situation came up on Friday. The chief technology officer of Tether Paolo Ardoino informed in his tweet that the WSJ report contained a “ton of misinformation and inaccuracies”. As it was mentioned in the report, Тether Holdings co-owner Stephen Moore spoke out against the use of fake sales invoices.
He specifically stated in the email: “I would not want to argue any of the above in a potential fraud/money laundering case.”
WSJ’s report also mentions a recording of a call with former Тether executive Phil Potter posted on YouTube by Bitfinexed in 2017.
“We’ve had banking hiccups in the past, we’ve just – we’ve always been able to route around it or deal with it, open up new accounts or what have you. There’s been lots of sort of cat-and-mouse tricks that everyone in the bitcoin industry has to avail themselves of.” – Potter said.
Cryptocurrency companies have always struggled to secure access to banks. Notably, Tether has had many bank aссounts in recent years, with some banks closing accounts of stablecoin issuers. WSJ’s report came up the day after crypto-friendly bank Silvergate came under scrutiny for announcing it had to revise its financial data and missed the deadline for filing its annual report. Key customers have cut ties with Silvergate and the share price has plummeted. In recent months, federal authorities have warned banks that their dealings with crypto could be risky.
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