Authorities recently charged two Chinese nationals with using Tether (USDT) and crypto-friendly Deltec Bank in a $73 million money laundering and wire fraud scheme. This isn't the first time Deltec and Tether have been linked to such accusations.

The Accusations

The Department of Justice (DoJ) alleges that Daren Li and Yicheng Zhang used a shell company to funnel cash to Deltec Bank. The funds were then converted to USDT, a cryptocurrency pegged to the US dollar, before being sent to cryptocurrency exchanges.

Prosecutors claim Li and Zhang used "money couriers, financial transactions with no legitimate commercial purpose, and shell accounts" to move the money. They also reportedly obtained citizenship in St. Kitts and Nevis, a Caribbean island known for its citizenship-by-investment programs.

Deltec and Tether Under Scrutiny

This case raises fresh concerns about money laundering in the cryptocurrency space. Deltec, known for its crypto-friendly services, has faced previous scrutiny. Tether, the world's largest stablecoin, continues to grapple with questions about its reserves backing the USDT peg.

What it Means

While the allegations haven't been proven in court, they highlight the potential for misuse in the cryptocurrency industry. Regulatory bodies are likely to take a closer look at crypto transactions and the institutions facilitating them.

Stay Informed

This is a developing story. Keep an eye out for further updates as the case progresses.