US, UK probe $20 billion Tether transfers tied to Russian exchange.

abdelaziz Fathi

U.S. and UK authorities are investigating the movement of $20 billion in the USD-pegged stablecoin tether (USDT) through Moscow-based exchange Garantex.

S&P casts doubt on Tether's stability, USDT reserves

The Russian platform was sanctioned for its role in money laundering, terrorism financing, and facilitating ransomware attacks. According to a Bloomberg report, which cited anonymous sources, this could represent the largest known violation of sanctions imposed on Russia since the onset of the Russia-Ukraine conflict in February 2022.

Garantex was hit with sanctions by the U.S. and UK in April 2022, highlighting a concerted effort to curb financial activities that might support the Russian military actions in Ukraine. The ongoing investigation focuses on the flow of USDT to understand the extent of the exchange’s involvement in bypassing the sanctions.

This inquiry is part of a broader clampdown on entities believed to be assisting Russian nationals in evading international sanctions through the use of cryptocurrencies. On March 25, the U.S. Department of the Treasury’s Office of Foreign Assets Control announced penalties against 13 organizations and two individuals for such activities.

The implications of these findings are yet to be fully realized, and it remains unclear whether Tether’s parent company has violated any laws.

Despite Tether’s operations being outside the U.S., American regulators, through the Office of Foreign Assets Control (OFAC), has mechanisms to influence the stablecoin’s offshore activities.

One notable instance of regulatory intervention involves Tether’s connection with Tornado Cash, a cryptocurrency mixer on the Ethereum network, which was sanctioned by OFAC in August 2022 for money laundering activities. This action confirmed the ability of regulatory bodies to impact the usage of tether indirectly, through international cooperation and measures targeting associated entities.

Earlier in February, JPMorgan Chase suggested that impending stablecoin regulations could pose challenges for Tether. They argue that such regulations are likely to favor stablecoins offering greater transparency and adherence to emerging KYC and AML standards, thereby reducing Tether’s appeal. This regulatory shift could also affect the decentralized finance (DeFi) sector, where USDT plays a critical role as a form of collateral and liquidity.

Read this next


BlockDAG’s Explosive Presale Hits $20.3M In April Swaying Investors From XRP’s Price Trends Upward, & Polygon’s NFT Market

Learn about BlockDAG’s impressive $20.3M presale results, XRP’s price increase prospects, and the booming NFT market on Polygon among the top 10 cryptocurrencies.

Retail FX

Financial Commission warns of Eplanet Brokers

The Financial Commission, a self-regulatory compliance specialist for the financial services industry, is ramping up its scrutiny of unregulated brokerage firms. Today, the independent association warned against a company called Eplanet Brokers.

Retail FX

Dubai crypto exchange steps into prop trading

Dubai-based cryptocurrency trading platform, CoinW Exchange, marked its sixth anniversary by announcing a rebranding initiative and launching a proprietary trading product.


Bitcoin payments app Strike launches in Europe

Bitcoin blockchain-based payments app Strike launched in Europe on Wednesday, allowing users in the region to buy, sell, and withdraw bitcoin (BTC).


Bandit Network’s Points SDK and Brave Ads Power Astar zkEVM’s Quest Platform “Yoki Origins”

“Yoki Origins,” supported by Bandit Network and Brave Ads, introduces a gamified and rewarding experience for Astar zkEVM users, marking a significant milestone in Web3 adoption.

Digital Assets

Crypto ETFs to debut in Hong Kong next week

Hong Kong has authorized six cryptocurrency-based spot ETFs set to launch on April 30, according to Bloomberg.


BlockDAG Among The Best New Crypto To Invest In Post 8 Billion Coins Sales; More On Bitcoin Cash Futures’ Launch & Solana Positive Predictions

Explore Solana’s ATH predictions to see whether it can rise after a $17B dip? BlockDAG sells 8 billion coins in presale as Bitcoin Cash Futures launch.

Fundamental Analysis, Market News, Tech and Fundamental

Global FX Market Summary:USD, FED, German IFO ,Gold April 24 ,2024

Mixed US economic data and Fed rate hike uncertainty are causing volatility in the EUR/USD pair, while the Eurozone and gold prices add another layer of complexity.

Market News, Tech and Fundamental, Technical Analysis

EURCHF Technical Analysis Report 24 April, 2024

EURCHF currency pair can be expected to rise further toward the next major resistance level 0.9840, which stopped the pervious waves C and B, as can be seen below.