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Tether Allegedly Used Falsified Documents and Intermediaries to Access Bank Accounts, Report Claims

Suspected Shell CompaniesTether Allegedly Used Falsified Documents and Intermediaries to Access Bank Accounts, Report Claims

The Wall Street Journal revealed that Tether, the company behind the world’s largest stablecoin, reportedly used fabricated documents and intermediaries to access bank accounts. The company allegedly utilized accounts held in the names of executives from various firms, with slight alterations to the companies’ names, to sustain its global financial system access in 2018.

The report highlights Crypto Capital Corp., a “shadow bank,” as one entity that held Tether funds before being closed down by authorities. The report also suggests that Tether and sister company Bitfinex managed to create multiple new bank accounts for shell companies in Asia in 2018. Tether has not yet commented on the allegations.

According to the Journal, Tether co-owner Stephen Moore expressed concerns about the use of fake sales invoices in relation to an intermediary trading USDT in China. The report also referred to a 2017 call recording with former Tether executive Phil Potter, where he discussed the challenges crypto companies face in securing banking access.

This report surfaces amid increased scrutiny on the relationships between banks and crypto businesses, as regulators caution banks about potential risks associated with the crypto industry.

By FCCT Editorial Team

Disclaimer: The views expressed in this article are independent views solely of the author(s) expressed in their private capacity.

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