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Tethers Partner Deltec Bank & Trust Is Accused Of Money Laundering


According to O Globo, law enforcement agencies of Brazil initiated a criminal proceeding against Deltec Bank & Trust, which is a partner of blockchain startup Tether. 

Police accuse the bank of money laundering. According to investigators, Deltec Bank & Trust transferred $ 25 million, obtained illegally, to the account of the Panamanian bank, and then received the money back, thus performing actions aimed at laundering funds.

This information is completely contrary to the publication of Tether, which has stated that Deltec Bank & Trust was a reliable bank and was fully aligned with legal requirements. The Tether post also states the following:

The bank's employees analyzed a full background check of the shareholders, ultimate beneficiaries and officers of our company; and assessments of our ability to maintain the USD-peg at any moment and our treasury management policies.

After the singing of a partnership agreement with Tether Bank, the money was transferred to Deltec Bank & Trust account, which secured the USDT stablecoin rate. In confirmation of this, the bank made a statement on the status of the Tether deposit account, which stores $ 1,831,322,828, so each USDT token is provided with $ 1.

However, the news about the bank’s accusation of illegal frauds once again destabilized the situation around the stablecoin. Investors and companies are worried about the future of the USDT, and the largest cryptocurrency exchange Binance is looking for a replacement for Tether and plans to add trading pairs with another stablecoin.