This Week in Startups Emergency Pod! Tether executives facing DOJ bank fraud probe (via Bloomberg) | E1253
Jul 27, 2021
Tether executives are under investigation by the DOJ for potential bank fraud, raising serious questions about the company's financial transparency. Concerns about their opaque asset holdings and ties to Chinese investments add to the scrutiny. The conversation reflects on past issues in the crypto world and the defensive responses from Tether. With Bitcoin's price in flux, the implications of this investigation could ripple throughout the entire cryptocurrency market, leaving investors wary.
AI Snips
Chapters
Transcript
Episode notes
Tether Under Investigation
- The Department of Justice is investigating Tether executives for bank fraud.
- This investigation follows previous scrutiny from the New York Attorney General.
Mainstream Attention
- Journalistic entities are starting to investigate, similar to cases like Theranos and Madoff.
- This shift from fringe to mainstream attention suggests a potentially serious situation.
Focus on Early Conduct
- The DOJ investigation focuses on Tether's early stages, specifically concealing crypto transactions from banks.
- This is separate from the market manipulation theory.