Judge selection in bank fraud case involving Tether

In July 2021, the US Department of Justice announced that it was investigating whether Tether executives committed bank fraud. Indeed, authorities accuse the USDT issuer of hiding crypto-related transactions from banks early in its activities. Since then, the investigation has stalled. For many observers, this would be due to the fact that the judicial authorities did not collect enough evidence. From now on, authorities hope to get there sooner.

An experienced judge

Monday, Bloomberg reported that at the behest of the United States Department of Justice, the United States Attorney’s Office for the Southern District of New York will now be responsible for investigating allegations of bank fraud from Tether. That will be the case at the hands of referee Damian Williams. As a reminder, the investigation aims to determine whether company executives hid crypto transactions from banks. By selecting Judge Williams, the Justice Department wants to ensure that it has passed the case to an experienced judge.

Bloomberg’s tweet

In recent years, the lawyer has led the most important legal issues in the digital assets industry. On the other hand, the court for the Southern District of New York has heard many cases related to the crypto industry. The most famous are the bankruptcies of lenders Celsius Network and Voyager Digital. The jurisdiction has also partnered with the Securities and Exchange Commission (SEC) to conduct several crypto-related criminal cases.

The New York judge and court are done crypto references.

Does Tether have anything to be ashamed of?

Last week, Tether has writing in a blog post he “I maintain an open dialogue with law enforcement, assisting the Department of Justice on some of the nation’s largest cybercrime and security cases”. The issuer of the USDT also does not appear to have received an official note stating that it is accused of bank fraud.

“Tether executives have not interacted with the Department of Justice in any investigation for over a year, and authorities do not appear to be actively investigating Tether”we read in the note.

Tether is a regular at broken down with American justice. Last year he paid about $19 million to avoid prosecution in a fraud case. This included crypto firm Bitfinex. In October 2021, Bloomberg there are published an investigation that implicates the responsibility of Tether’s (USDT) CFO, Giancarlo Devasini. The latter would use the company’s reserves to carry out its own investments.

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Avatar Luc Jose Adjinacou
Luc Jose Adjinacou

No less than it dampened my enthusiasm, an unsuccessful investment in a cryptocurrency in 2017 only increased my enthusiasm. Therefore I decided to study and understand the blockchain and its many uses and transmit with my pen information about this ecosystem.

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