Several news reports have said that the Justice Department investigation into Tether-related bank fraud has been transferred to another team.

According to For an article issued Yesterday, Monday from Bloomberg, the Department of Justice continues its investigation into Tether.

Tether responds that the information in the Bloomberg article is incomplete and inaccurate.

According to the article, the investigation is being led by U.S. Attorney Damian Williams from Manhattan.

Williams is known to have aggressively pursued crypto-suspect cases in the past, and recently received a guilty plea from someone linked to one of Tether’s payment processors.

Investigators warned Tether that the company could be charged with bank fraud in July of last year, Bloomberg said.

Prosecutors are reportedly investigating whether Tether concealed the nature of its crypto transactions in its early days, which would constitute a crime.

The case was moved after months of legal wrangling, according to people familiar with the matter who requested anonymity for privacy reasons, the news agency reported.

Federal prosecutors said the decisions to move such investigations were unusual, but deemed necessary because of the Southern District of New York’s experience in handling related crimes.

Robertson Park, partner at Davis Wright Tremaine, said:

Transferring crypto cases and cases to specific offices may become more common and reasonable.

There is a steep learning curve for the people involved in these investigations and probably a relatively limited number of people who have actual experience and understanding of such issues.

Tether Corporation responds:

Contrary to Bloomberg’s allegations, Tether told the company on Monday that the company has been in frequent contact with the Justice Department, but has not discussed anything related to the investigation for more than a year.

He explained that the Department of Justice is not currently investigating Tether and that the company was identified as a victim along with Bitfinex in one of the lawsuits cited by Bloomberg.

Tether responded:

Bloomberg is recycling old news that isn’t even factual.

This is another example of their poor journalism and inability to separate truth from lies.

Tether has had a strained relationship with Bloomberg in the past, with Tether repeatedly criticizing what it calls outdated news headlines from the news organization.

In 2021, a Bloomberg report on Justice Department action against Tether called Tether a “clickbait” headline.

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