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Tether CEO denies reports as US probes and weighs sanctions

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Tether CEO Paolo Ardoino denied reports of lawmakers investigating the major cryptocurrency company over potential violations of anti-money-laundering and sanctions laws.

The reported investigation, led by Manhattan prosecutors, focuses on whether Tether’s cryptocurrency (USDT) has been used to fund illegal activities, such as drug trafficking or terrorism, or to launder money from these activities, according to The Wall Street Journal. 

At the same time, the U.S. Treasury Department is considering imposing sanctions on Tether, per WSJ. 

Sanctions could prevent Americans from conducting business with the company, primarily because its cryptocurrency has allegedly been used by sanctioned individuals and groups, including Russian arms dealers and the terrorist group Hamas.

Tether CEO Paolo Ardoino vehemently denied these reports, posting on X: “As we told WSJ, there is no indication that Tether is under investigation. WSJ is regurgitating old noise. Full stop.” 

Past criticisms of Tether

In September, Consumers’ Research released a report criticizing Tether, the issuer of the USDT stablecoin, for its lack of transparency and failure to conduct a full audit of its dollar reserves, despite promises dating back to 2017.

The report likened Tether’s operations to those of the collapsed FTX and raised concerns over its alleged use in circumventing international sanctions, particularly in countries like Venezuela and Russia.

Tether’s cryptocurrency, known as a stablecoin, is tied to the value of the U.S. dollar, unlike more volatile cryptocurrencies like Bitcoin. This stability makes Tether popular in regions where access to the U.S. dollar is restricted or banned.

As much as $190 billion worth of tether is traded globally each day, making it the most widely used cryptocurrency in the world.

While Tether has denied any involvement in illegal activities, the company has taken steps to prevent misuse of its currency, including partnering with firms that track transactions. 



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Crypto scam

Andrew Tate is Poison — Crypto Must Stand Up for Coffeezilla

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Andrew Tate’s response to Coffeezilla shows he’s thin-skinned and doesn’t care about the people who have invested in his tokens.

On-chain sleuth Coffeezilla has become a thorn in the side of high-profile influencers shilling coins to their millions of fans.

One of his best-known scalps is Logan Paul, who was ripped to shreds over his embattled and now-abandoned project CryptoZoo. 

Coffeezilla’s also gone toe-to-toe with the likes of Sam Bankman-Fried as he vies to uncover scams to his 3.77 million subscribers on YouTube.

But now, the investigator is facing an almighty backlash about a deep dive that hasn’t even been released yet — and it relates to a number of coins that have been endorsed by Andrew Tate.

On Wednesday, Coffeezilla shared a DM that he had sent to Tate, asking whether he had been paid to promote cryptocurrencies, including ROOST and DADDY.

Andrew Tate is poison — crypto must stand up for Coffeezilla | Opinion - 1
Coffeezilla’s DM to Andrew Tate | Source: @coffeebreak_YT

The message also pointed out that this is completely at odds with videos that Tate had released on X earlier this year, where he was topless and appeared to have substantially more hair.

Coffeezilla is following a crucial journalistic principle known as the “right of reply.” If you’re going to make allegations against someone, they must have the ability to respond before publication.

But instead of answering the legitimate questions put forward — which would be of interest to his many acolytes — Tate chose to go down the homophobic route.

By the looks of things, this has now unleashed a huge can of worms. Coffeezilla shared a screenshot that shows how his inbox has been bombarded with slurs.

Why? Because Tate reposted an anonymous account that exposed Coffeezilla’s email address, with the misogynist telling his followers: “Email him and call him gay.” 

Undeterred, the investigator has insisted that he still wants a reply to his questions — and it’s likely that, if the clock runs out, Coffeezilla’s video will go live anyway without a comment.

The YouTuber also posted a comical mash-up that showed Tate chomping on a cigar because it looks cool, declaring that he respected Coffeezilla, cutting to another clip where he says:

“Coffeezilla is a b****. I don’t give a f*** about your video, I don’t respect your journalism.”

Given how wide-eyed Tate is as he jabs his finger toward the camera, you could suggest that all of this scrutiny is bothering the sham entrepreneur more than he lets on.

Andrew Tate is poison — crypto must stand up for Coffeezilla | Opinion - 2
Andrew Tate drinks more coffee than you do

What is Coffeezilla investigating? 

Coffeezilla, who married his high school girlfriend in 2017, has so far remained tight-lipped about the nature of the allegations against Andrew Tate and his brother Tristan. 

But it seems a core part of the focus in his upcoming investigation will surround the $DADDY token, which has fallen precipitously in value since launch and has never recovered.

An all-time high of $0.2925 was set in mid-June when CoinMarketCap started tracking the altcoin — and at the time of writing, it’s down by more than 48%.

Tate’s full rebuttal video is something of a parody — honestly, some of the lines in there are pure comedy, especially how they are delivered. He tells Coffeezilla: 

“I guarantee I drink more coffee than you — meaning you’re a fraud to begin with. You’re doing this little breakdown, this investigation, you just emailed me in a homosexual tone.”

To be honest, I don’t even know where to start with this. You can’t have “Coffee” in your handle unless you prove you’ve got a higher caffeine tolerance than Andrew Tate? Daring to scrutinize a man who has more legal troubles than Lamborghinis reveals his sexual preference? 

Even before knowing the exact nature of Coffeezilla’s investigation, we have an insight into how thin-skilled Andrew Tate really is — and ultimately, how little he cares for his community, as well as those who have invested in his tokens.

Tate’s toxic masculinity has preyed on the insecurities of disenfranchised young men around the world while his foray into crypto has dived into their wallets — creating a false illusion that they, too, will experience extreme wealth one day.

When you think about it, Tate’s branding and messaging are reminiscent of an era that most of the crypto world has been trying to move away from, when the ICO boom of 2017 was full of wild excesses along with never-ending images of fast cars and bundles of cash. 

In this battle, the crypto community needs to rally behind Coffeezilla — a man who has taken great risks to expose bad actors in the space and stand up for those who have lost their life savings to some of the industry’s most audacious scams. He, among others, serves as crypto’s immune system, with every investigation slowly chiseling away at the sector’s “Wild West” image and deterring opportunistic thieves planning to swindle unsuspecting victims.

The crypto community needs to distance itself from narcissists like Tate, who use homophobia as a weapon to deflect against their own shortcomings. Coffeezilla’s sexual orientation has zero relevance to the work he performs, and it’s shameful to think otherwise. Digital assets won’t ever achieve mass adoption if the influencers within this space denigrate innocent people who are doing nothing wrong.

And last but not least, the crypto community needs to realize that Andrew Tate and his coins represent everything that this innovative sector is not: hateful, harmful and dishonest. Engaging with him only drags down the rest of the industry.

Crypto is all about the future. Tate’s worldview belongs to the past.





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Another country launches investigation against Telegram: What’s going on

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An investigation has begun against Telegram in South Korea on similar charges brought against the messenger in France.

Yonhap News Agency, citing the police, reported that the platform is accused of aiding and abetting sexual crimes. The head of the South Korean National Police Investigation Agency, Woo Jong-soo, said that Telegram is not providing the data necessary for the investigation, including account information.

Yonhap notes that this is the first investigation against Telegram in South Korea. It concerns eight bots that generate fake materials with sexual content and channels that distribute these images. From Aug. 26 to 29, the police received 88 complaints and identified 24 suspects.

South Korean law enforcement officials want to cooperate with French authorities. According to them, a similar problem worries representatives of other countries, including the United States.

Telegram Blocked in Indonesia

Jakarta Globe also reported after the investigation began in France, citing a statement by Indonesian Minister of Communications and Information Technology Budi Arie Setiadi, that Indonesian authorities are considering blocking Telegram in the country.

The minister said that the authorities are concerned about the spread of illegal content on Telegram, including the alleged involvement of Pavel Durov’s project in promoting online gambling and distributing pornography.

“I would prefer to shut down Bigo Live and Telegram immediately, but a team needs to conduct further studies first.”

According to him, the Indonesian government has repeatedly approached Telegram representatives and the team of another live-streaming app, Bigo Live, asking them to improve content moderation. However, the companies must still implement more effective measures to meet the country’s regulator’s requirements.

The investigation against Telegram in France

Telegram founder Pavel Durov was detained in France. He has been charged with conspiracy in sexualized violence against children, drug trafficking, and several other crimes that were committed thanks to the ability to remain anonymous on Telegram.

After four days in custody, Durov was released on bail of €5 million, banned from leaving France, and ordered to report to the police twice a week.

Telegram stated that the platform’s moderation meets standards, the messenger team complies with EU laws, and blaming the platform’s founder for user abuses is absurd.

New details of Durov’s interrogation

Earlier, the French newspaper Liberation, citing a source close to the investigation, reported that Durov, during interrogation in Paris, said that he had communicated with representatives of the General Directorate of Internal Security of the French Ministry of the Interior.

The publication claims that the messenger’s founder allegedly said that he opened an official communication channel with French counterintelligence as part of the fight against terrorism. This concerns a certain “hotline” and a special email address. The exchange of information via this communication channel made it possible to prevent several terrorist attacks.

According to Liberation, Durov expressed his willingness to cooperate with law enforcement agencies after his arrest and gave them his phone with the access code to it.

However, the information presented in the Liberation publication has not been officially confirmed. Representatives of the French investigation and Pavel Durov did not comment on it.

Telegram accumulates crypto assets

According to the Financial Times (FT), Telegram held about $400 million in cryptocurrencies in 2023. FT, citing financial documents, added that in 2024, the messenger sold Toncoin (TON) worth more than $244 million.

In addition, last year, the company received revenue of $342 million, operating losses of $108 million, and total losses of about $173 million after taxes. Telegram also raised about $2.4 billion in debt financing, maturing in 2026.

Telegram’s crypto initiatives continue to develop

Telegram’s cryptocurrency initiatives began to develop especially rapidly after Durov again spoke about creating decentralized financial instruments based on the social network in December 2022. He revealed the tools for trading and storing cryptocurrencies. The team’s plans included creating non-custodial crypto wallets and decentralized exchanges.

Durov’s initiative responded to the collapse of the centralized crypto exchange FTX in November 2022. He believed that the crypto industry should return to its decentralized roots. The developer should have specified when the messenger’s new tools would appear on the market.

“We, developers, should steer the blockchain industry away from centralization by building fast and easy-to-use decentralized applications for the masses. Such projects are finally feasible today.”

Since then, Telegram has begun actively strengthening its presence as a tool for cryptocurrencies and decentralized finance (defi). The messenger now has its cryptocurrency wallet, mini-games for earning cryptocurrencies, and more.

After Durov’s arrest in France, the community had concerns about the messenger’s further development. However, the Telegram team concluded they had a plan in case of force majeure.

What will happen to Telegram?

The concerns about the messenger are primarily related to the problem of content moderation, which is why, according to the authorities, the messenger is actively used by criminals.

After the accusations in France, the authorities of other countries may follow suit and begin to analyze Telegram’s activities more actively. However, no other charges have been brought against Durov yet.



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India

Telegram Under Scrutiny in India, But Ban not Imminent: Reports

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“Locally, a Telegram ban will have a lasting negative impact on the business development and marketing of the more than 300 solid web3 projects from India,” said Ayush Ranjan, CEO of Huddle01, a DePIN dedicated to making real-time communication performant. “Millions of Indians are active members…disrupting this communication would also impact the price formation of projects’ tokens. If the ban goes through, people will have to move to other app.”



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