**Tether in Turmoil: Crypto Market Shaken by Fresh Investigation Allegations**

The cryptocurrency market recently experienced significant turbulence following a Wall Street Journal report about a federal investigation into Tether, a leading stablecoin issuer. Despite being labeled as "old noise" by Tether CEO Paolo Ardoino, the news sent ripples through the market.

The Wall Street Journal article mentioned that the US Attorney's Office for the Southern District of New York is conducting a criminal investigation into Tether USDT, focusing on its potential use by third parties for illegal activities and money laundering. According to the report, this investigation has been ongoing for several years.

Simultaneously, the Treasury Department is reportedly contemplating sanctions against Tether due to its extensive usage by sanctioned individuals and groups, including the terrorist group Hamas and Russian arms dealers. The Wall Street Journal highlighted that up to $190 billion in USDT is traded daily.

Tether responded strongly to these allegations, calling them "outrageous" and criticizing the Wall Street Journal for making "reckless allegations" without named sources or confirmation from authorities. Tether reiterated its extensive cooperation with law enforcement agencies to prevent the misuse of its currency.

Paolo Ardoino dismissed the claims via a post on X, asserting there is no indication that Tether is under current investigation and labeling the report as merely recycled news. This situation has added to Tether's history of scrutiny, with criticism from bodies like the United Nations and consumer protection organizations.

In 2021, Tether and the affiliated exchange Bitfinex faced a combined fine of $42.5 million by the Commodity Futures Trading Commission (CFTC) for violations of the Commodity Exchange Act. Ripple CEO Brad Garlinghouse also remarked in a May podcast that the US government appears to be targeting Tether.

Tether maintains that it has been proactive in assisting law enforcement, claiming it helped recover more than $108.8 million in USDT linked to illegal activities since its launch in 2014. Despite these assurances, the recent allegations have caused notable concerns in the crypto market, with various cryptocurrencies experiencing a decline in value.