Oct 25 (Reuters) - Tether's top executive said on Friday

the company has seen no sign it is under investigation, after

the Wall Street Journal reported U.S. authorities are probing

potential violations by the cryptocurrency firm of sanctions or

anti-money laundering rules.

Federal investigators, led by the U.S. Attorney's Office in

Manhattan, are scrutinizing whether the cryptocurrency has been

used by third parties to fund illegal activities such as the

drug trade, terrorism and hacking - or to launder the proceeds

generated by them, the WSJ said, citing unnamed sources.

Tether is the world's largest stablecoin, a type of

cryptocurrency designed to hold a fixed value over time.

"There is no indication that Tether is under investigation,"

Tether CEO Paolo Ardoino said on X.

A spokesperson for the U.S. attorney's office declined to

comment.

The Treasury Department has been weighing sanctions on

Tether because of widespread use by sanctioned individuals and

groups, the WSJ report said. The crypto firm has been under

investigation for years in connection with potential bank fraud

by backers, the report said.

The Treasury Department's Financial Crimes Enforcement

Network did not respond immediately to requests for comment.

"The article ... carelessly glosses over Tether's

well-documented and extensive dealings with law enforcement to

crack down on bad actors seeking to misuse tether and other

cryptocurrencies," Tether said in a statement about the WSJ

report.