Tether: A Currency for the Crypto Underground and the Wall Street Elite

Introduction:

Tether, a cryptocurrency designed to maintain a stable value pegged to the US dollar, has become a popular tool for illicit activities and has drawn scrutiny from law enforcement and regulators. Despite its public image as a safe and legitimate currency, Tether has been linked to terrorist financing, money laundering, and various criminal enterprises.

Illicit Activity:

Tether has become the currency of choice for criminals due to its anonymity and accessibility. North Korean regime, Mexican drug cartels, Southeast Asian human traffickers, and other nefarious actors have all been found using Tether to facilitate large financial transactions.

Sa'id al-Jamal Case:

A specific Tether wallet controlled by Sa'id al-Jamal, a financier of the Houthi fighters, was identified by the US Treasury Department and sanctioned for ties to terrorist groups. Despite the sanctions, al-Jamal reportedly used those wallets to move over $300 million of Tether.

Cantor Fitzgerald and Howard Lutnick:

Cantor Fitzgerald, a mid-sized investment bank, has become Tether's primary financial broker. Howard Lutnick, Cantor's CEO, has emerged as a vocal advocate for Tether, vouching for its legitimacy despite concerns raised by regulators.

Lutnick's Ties to Tether:

Lutnick has stepped into a controversial role, balancing his position as a Commerce secretary nominee and his close ties to Tether. His relationship with the crypto company has sparked ethical concerns, as it could potentially influence his regulatory decisions affecting the crypto industry.

Tether's Financial Gains:

Tether generates substantial revenue from interest on government debt held by Cantor Fitzgerald. Its CEO, Giancarlo Devasini, has amassed a fortune estimated at $8 billion, making him one of Italy's wealthiest individuals.

Stablecoins and US Dollar Dominance:

Lutnick has argued that stablecoins, including Tether, benefit the US economy by creating demand for US debt and reinforcing dollar hegemony. This argument has reportedly swayed former President Trump, who supports the promotion of domestic stablecoins.

Regulatory Scrutiny:

Tether faces ongoing investigations by the US Treasury's Financial Stability Oversight Council and federal prosecutors in New York. Regulators have expressed concerns about the company's lack of transparency and its potential to disrupt the financial system.

Conclusion:

Tether's dual nature as a tool for both illicit activities and financial gains has raised complex questions about digital currency regulation. Its relationship with Cantor Fitzgerald and the potential for conflicts of interest highlight the need for careful oversight and ethical guidelines in the evolving world of cryptocurrency.