Crypto Rally Foiled by Report of DOJ Probe of Tether

Bitcoin appeared poised to make another run at $70,000, but a WSJ story of a criminal probe into the stablecoin issuer sent prices tumbling.

A Justice Department probe into stablecoin issuer Tether (CRYPTO: USDT) has halted a crypto rally on Friday, sending prices tumbling.

What Happened: Cryptocurrency prices reversed early gains and were broadly lower during U.S. afternoon hours on Friday following a Wall Street Journal report.

The report said the U.S. is probing stablecoin issuer Tether for violations of sanctions and anti-money laundering rules.

Stablecoins are a type of cryptocurrency whose value is pegged to another asset, typically the U.S. dollar. With a market cap of over $120 billion, tether is by far the most widely used stablecoin.

Bitcoin (CRYPTO: BTC) appeared poised to make another run at $70,000. Earlier in the session, crypto prices were rising, with bitcoin nearing the $69,000 level.

Bitcoin was trading nearly 2% lower over the past 24 hours at $66,800 in the minutes following the news on Tether.

The news on Tether sent bitcoin prices tumbling to as low as $66,500. Bitcoin prices recovered slightly following the news.

Related Link: 5 Things To Know About Stablecoins

Tether Reacts: Tether Chief Technology Office Paolo Ardoino said the WSJ is “regurgitating old noise” in a statement to CoinDesk shortly following the story.

There is no indication that Tether is under investigation, Ardoino said in the statement.

See More: Best Cryptocurrency Scanners

The above is the detailed content of Crypto Rally Foiled by Report of DOJ Probe of Tether. For more information, please follow other related articles on the PHP Chinese website!