Bitcoin is down late Friday after Israel launched air strikes against multiple military targets in Iran. 

The Israel Defense Force released a statement and video on X, writing “In response to months of continuous attacks from the regime in Iran against the State of Israel—right now the Israel Defense Forces is conducting precise strikes on military targets in Iran. The regime in Iran and its proxies in the region have been relentlessly attacking Israel since October 7th—on seven fronts—including direct attacks from Iranian soil. Like every other sovereign country in the world, the State of Israel has the right and the duty to respond. Our defensive and offensive capabilities are fully mobilized. We will do whatever necessary to defend the State of Israel and the people of Israel.”

Source: X

Wall Street Journal Launches FUD Attack on Tether

The WSJ published today and alleges that Tether is being investigated for potentially violating sanctions and anti-money-laundering regulations. The WSJ said its sources say Manhattan’s U.S. attorney’s office is exploring whether Tether has been used to fund or launder money tied to criminal activities like terrorism, drug trafficking, or hacking. 

The WSJ said the Treasury Department is also considering sanctions due to Tether’s usage among groups sanctioned by the U.S., including organizations like Hamas and Russian arms dealers. If sanctioned, Americans would be generally restricted from interacting with Tether.

The news sent Bitcoin sharply down to $66,200, before it recovered, and then dropped again to $66,183 as news broke that Israel had launched strikes against Iran.

Source: Brave New Coin Bitcoin Liquid Index

Did the Wall Street Journal Get It Wrong?

We’re not sure. But Tether CEO Paolo Ardoino thinks so. He took to X to deny the report, stating “At Tether, we deal regularly and directly with law enforcement officials to help prevent rogue nations, terrorists and criminals from misusing USDt. We would know if we are being investigated as the article falsely claimed. Based on that, we can confirm that the allegations in the article are unequivocally false.” He also wrote, “As we told to WSJ there is no indication that Tether is under investigation. WSJ is regurgitating old noise. Full stop.”

Source: X

Tether, with its dollar-pegged value, is the most heavily traded cryptocurrency, with daily transactions reaching up to $190 billion. Its stability makes it useful in regions where U.S. dollar usage is restricted, but federal authorities are increasingly concerned due to its ties to issues like North Korea’s nuclear program and Mexican drug cartels. Tether counters these accusations, stating, “To suggest that Tether is somehow involved in aiding criminal actors or sidestepping sanctions is outrageous,” and asserts that it collaborates with law enforcement to combat illegal activities.

Years ago, the Justice Department began scrutinizing Tether’s backers for alleged bank fraud. Since then, Tether has implemented more stringent controls to monitor illicit use. The company argues that its transparent ledger system discourages criminal use, enabling authorities to track transfers more efficiently. Tether has recently bolstered its compliance measures, partnering with analytics firms Chainalysis and TRM Labs to enhance transaction monitoring, and hired a new government affairs head from PayPal to strengthen its regulatory efforts.