Tether’s Alleged Use of False Documents and Shadow Intermediaries to Open Bank Accounts

03/04/2023 22:26 • Crypto & Markets • 75 views

According to reports, according to the Wall Street Journal, the stable currency issuer Tether opened bank accounts through forged documents and shadow intermediaries. In 2018, Tether used bank accounts opened in the names of senior executives of several companies and fine-tuned the names of these companies to access the global financial system.

Foreign media: Tether used forged documents and shell companies to open bank accounts

Interpretation of the news:

According to a report by the Wall Street Journal, Tether, the stable currency issuer, allegedly opened bank accounts with the help of false documents and shadow intermediaries. The report claims that in 2018, Tether used bank accounts opened in the names of senior executives of different companies and fine-tuned the names of these companies to access the global financial system.

Tether is a blockchain-based platform that enables the creation of tokens designed to have a stable value. It is touted as being backed by the US dollar, with each token representing one dollar. This makes Tether a popular tool for traders and investors as it allows them to avoid the volatility of other cryptocurrencies. However, Tether has been under scrutiny in recent years due to questions about its backing and transparency, with some accusing the company of creating new tokens without enough funds to back them up.

The allegations in the Wall Street Journal report add yet another layer of controversy to Tether’s operations. If true, the use of false documents and shadow intermediaries to open bank accounts would be a serious breach of financial regulations. The report states that Tether’s executives used fake documents to show that the accounts were opened by the legitimate company executives, making it easier for Tether to access the banking system.

Moreover, Tether is known for being privacy-focused, and according to the report, the company used shadow intermediaries to maintain that privacy while opening bank accounts. These intermediaries are individuals or companies that act as go-betweens to create a layer of anonymity between the bank and the account holder. While not necessarily illegal, the use of shadow intermediaries raises questions about Tether’s transparency and motives for maintaining secrecy.

Overall, the allegations against Tether are serious and call into question the legitimacy of the stable currency issuer. If Tether did indeed use false documents and shadow intermediaries to open bank accounts, it would be a clear violation of financial regulations designed to prevent money laundering and other illegal activities. Additionally, the use of shadow intermediaries could undermine the trust that investors and traders have in Tether, who may see the company as attempting to cover its tracks.

In conclusion, the alleged actions of Tether are murky and raise significant concerns about its operations. The company needs to ensure that it is acting in line with regulatory frameworks and keeping its operations transparent, particularly given the increased scrutiny of cryptocurrencies in recent years.

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Tether’s Alleged Use of False Documents and Shadow Intermediaries to Open Bank Accounts

Foreign media: Tether used forged documents and shell companies to open bank accounts

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