Tether said, “We are starting to receive requests from LE to temporarily freeze assets while an investigation occurs.”
Tether has frozen FTX’s USD Tether (USDT) balance following instructions from law enforcement authorities.
Currently, FTX is under investigation by several US regulators; the exchange is being probed by US DOJ, SEC, and CFTC for mishandling clients’ funds.
In particular, the SEC has had an ongoing probe into FTX for the past few months that expanded after the platform came under threat of bankruptcy. Alameda Research and FTX US are also under inquiry by the CFTC and the SEC over the same accusations.
Moreover, Texas regulators have recently launched probes into FTX and Sam Bankman-Fried for violating the Securities Law.
Tether, however, has not disclosed the name of the law enforcement agency.
Earlier today, the USDT temporarily dropped its $1 peg and fell to 97 cents after Binance pulled out of the FTX acquisition deal. USDT has since regained its 1:1 peg with USD.
