WSJ: Used Fake Documents and Front Companies to Access Tether Banking System

According to a report in the Wall Street Journal Tether’s behind cryptocurrency companies used fake documents and front companies to open bank accounts.

Wall Street Journal Makes Heavy Accusations About Tether

In late 2018, companies behind Tether were struggling to maintain their access to the global banking system. The documents show that some of his supporters turned to dubious intermediaries, forged documents and front companies to get back into the system.

One of these brokers, a major Tether trader in China, is trying to circumvent the banking system by “providing fake sales invoices and contracts for every deposit and withdrawal,” said Stephen Moore, owner of Tether Holdings Ltd, in an email viewed by The Wall Street Journal. “He said he was working.

According to the emails, Moore said it was too risky to continue using the fake sales invoices and contracts he signed and advised them to abandon their efforts to open an account. “I wouldn’t want to discuss any of the above in a potential fraud/money laundering case,” he wrote.

A series of emails and documents reviewed by the WSJ illustrate a long-standing effort to stay connected to the financial system. Companies often hide their identities behind other businesses or individuals.

The use of third parties has occasionally caused problems, including hundreds of millions of dollars in seized assets and links to an identified terrorist organisation.

A source with knowledge of the matter said that Tether is under investigation by the US Department of Justice.

*Not investment advice.