The United States Department of Justice has reopened an investigation into Tether Holdings according to a report Bloomberg citing anonymous sources close to the investigation.

According to the report, the investigation is focused on allegations seeking to learn whether Tether violated any form of banking rules regarding the movement of cash under false pretenses.

The sources said that the case was transferred to the District Office in the Southern District of New York, where lawyers such as Damian Williams, recognized for investigating the most high-profile cases in the digital currency ecosystem, operate.

While Tether executives had been informed by federal prosecutors over a year ago that they could be investigated in connection with some banking violations, the investigation report, if confirmed, will be the first proactive step in investigating regulators in that regard. felt in a long time.

The transfer of the cases between departments of the Department of Justice is an unusual move and shows the dynamics of the legal loopholes in the digital currency ecosystem that are still evolving. The current investigation focuses on the partnership between Tether and Crypto Capital after the issuer of the stablecoin lost its banking relationships in the US, preventing it from accessing the US to process its transactions.

One of the Crypto Capital executives, Reginald Fowler, had already pleaded guilty to crimes related to false representations to obtain USD for his trading activities. It is unclear if the current investigation will involve Crypto Capital at this time.

Tether released a statement refuting claims that it is currently under investigation, saying no official has been in touch in over a year.

“Tether executives have had no interactions with the DOJ in connection with any investigation for over a year and the DOJ does not appear to be actively investigating Tether,” he wrote in the statement.

Since Tether is known to resolve some of its past investigations through a settlement with the New York Attorney General’s (NYAG) office, the firm said that continue to promote transparency in your product offering.

Image Source: Shutterstock