On Sunday, Tether, the issuer of USDT, the largest and most widely used stablecoin on the market, marked a significant turning point as it celebrated its 10th anniversary.
In a recent interview with FOX Business, Tether CEO Paolo Ardoino addressed widespread criticism of the company’s lack of transparency regarding its reserves and recent performance and plans.
Tether Oversight Task Force
Ardoino, who took over as CEO in 2023 after six years as the company’s chief technology officer, outlined Tether’s strategy to revitalize the brand in the coming months.
These efforts include building partnerships with U.S. law enforcement agencies and strengthening collaboration with broker-dealer Cantor Fitzgerald and CEO Howard Lutnick.
Ardoino highlighted that Tether currently works with more than 180 law enforcement agencies across 45 jurisdictions, including the FBI and the Department of Justice (DOJ).
This cooperation with law enforcement is important, and the Department of Justice has acknowledged Tether’s assistance in freezing illicit funds. Recently, Tether partnered with other crypto companies, including Tron and TRM Labs, to establish a surveillance task force to combat financial crimes related to USDT.
Ardoino said Tether has about 350 million users around the world, many of whom live in developing countries, who use USDT as a hedge against “weak monetary systems and unstable currencies.” He pointed out that
People are tired of being exposed to bad government decisions regarding monetary policy. We need to ensure the ecosystem is secure so we can continue to support them.
Allegations of illegal funding and corruption
Nevertheless, Tether has faced persistent criticism from regulators over its alleged involvement in illicit financial activities such as money laundering and ransomware payments. Allegations suggest the company helped sanctioned countries such as North Korea, Russia and Iran circumvent traditional financial systems, contributing to crime and terrorism.
This summer, Tether was the target of a multimillion-dollar ad campaign by the nonprofit Consumers Research, accusing it of corruption through digital billboards in Times Square and TV ads.
In response to these criticisms, Ardoino acknowledged that Tether had been “previously naive” and failed to adequately respond to concerns, noting that the company did not establish a public relations team until 2022. And a company that helps hundreds of millions of people,” he said.
As part of its efforts to combat illegal activity, Tether has blocked over $1.8 billion in USDT from over 1,850 crypto wallets, working closely with U.S. government agencies on 636 of them.
Expecting changes in attitudes towards digital assets
Mr. Ardoino said in an interview that he would be open to an audit by one of the “big four” U.S. accounting firms, but pointed to the current regulatory environment as a barrier.
The CEO highlighted the challenges posed by anti-crypto lawmakers, specifically mentioning Massachusetts Sen. Elizabeth Warren, which complicates auditors’ ability to engage with crypto companies, especially those based outside the United States. He said that
Looking ahead, Ardoino hopes that the outcome of the US elections scheduled for November will change the regulatory stance towards digital asset markets.
When I was a kid, I remember America being the king of all new technologies and discoveries. For the first time in history, the United States has dropped the ball on perhaps one of the most innovative technologies of our time.
The 1D chart shows that the market capitalization valuation of cryptocurrencies is $2.12 trillion. Source: TOTAL on TradingView.com
Featured image from DALL-E, chart from TradingView.com
