Tether, a prominent stablecoin operator, is reportedly under criminal investigation over prior actions from its early days, including whether or not the company concealed from banks that transactions were linked to crypto.

Why should we care?
The criminal probe could have far-reaching consequences for the cryptosphere, especially given that Tether is one of the top digital assets by market capitalization, and the token is often used to trade Bitcoin. Tether allows users to move funds between exchanges and offers some protection from crypto price fluctuations. Tethers in circulation are worth $62B and underpin more than half of Bitcoin trades. Criminal charges could have significant ramifications, given that Tether is the most popular stablecoin. This isn’t the first time Tether has been under investigation: Tether, and sister exchange Bitfinex settled with the New York Attorney General’s Office on a probe as to whether these entities were covering up the loss of nearly $1B in customer funds. In 2018, the Department of Justice was reportedly investigating whether Tether and Bitfinex were “pumping Bitcoin's price.” In a statement, Tether questioned the accuracy of Monday’s report. “Tether routinely has open dialogue with law enforcement agencies, including the U.S. Department of Justice, as part of our commitment to cooperation, transparency, and accountability,” the company said.