Tether is “doing the best we can” to crack down on illegal use of cryptocurrencies, CEO Paolo Ardoino told CoinDesk. He added that USDT’s role in illicit finance is “a drop in the ocean” compared to the US dollar. “We do not expect political favors from anyone,” the company said of Howard Lutnick’s role in Donald Trump’s campaign. The WSJ reported on Friday that Tether was under US criminal investigation, a claim the company denied.
Lugano, Switzerland – As crypto giant Tether comes under new scrutiny, CEO Paolo Ardoino tells CoinDesk that the company respects international sanctions and works closely with law enforcement, but He admitted that he was essentially at the mercy of the US authorities.
“If the United States wants to kill us, they can press a button and kill us wherever they are,” Ardoino said. “We are not going to fight the United States.”
He added, “We may not be the best at expressing ourselves, but the important thing is that we built the Tether compliance system into the FBI.” “We joined the U.S. Secret Service. We received a letter of appreciation from the Department of Justice…I think we’re doing our best.”
CoinDesk reported Friday’s plan, hours before the Wall Street Journal published an article alleging that the U.S. Department of Justice (DOJ) was conducting a criminal investigation into Tether for alleged violations of sanctions and anti-money laundering laws. I interviewed Mr. Ardoino at the B conference. Bitcoin (BTC) and other cryptocurrencies fell in response to this report.
Mr. Ardoino later wrote on X that he saw “no indication that Tether was under investigation,” and Mr. Tether criticized the Journal’s article as “so irresponsible.”
Also last week, Politico reported on a potential conflict of interest for Howard Lutnick, CEO of Wall Street bond trading giant Cantor Fitzgerald, a key ally of Tether. He controls most of Tether’s $80 billion in U.S. Treasury securities. Lutnick also heads Republican presidential candidate Donald Trump’s transition team.
Tether being targeted by U.S. authorities could have implications for the entire $2 trillion global digital asset market. The company is a key player in the cryptocurrency ecosystem. With a market capitalization of $120 billion (USDT), it is the industry’s largest stablecoin, serving as the primary form of liquidity in trading venues and increasingly used as a payment method in emerging markets.
cantor and tether
Asked about the possibility that U.S. authorities have influence over Tether through U.S.-based Kantar’s reserve assets, Ardoino said the company “cannot hide.”
“No matter where you hold your T-bills, they end up in your Fed account,” he said, referring to the Federal Reserve.
“The reason I’m comfortable with Cantor is because we respect OFAC.” The Office of Foreign Assets Control enforces sanctions against countries and individuals, including terrorists and drug traffickers. Department of the United States Department of the Treasury.
Asked about USDT’s role in illicit finance, Ardoino said it was “a drop in the ocean” compared to what the US dollar is used for.
“No one is perfect, but look at the fines banks have paid for supporting drug lords,” he said. For example, TD Bank agreed this month to pay more than $3 billion in fines for failing to properly monitor money laundering by drug cartels.
Ardoino said Tether is active in freezing and blacklisting crypto wallets and that the company is working with 180 government agencies around the world.
“The message we are sending is very loud and clear: If you want to use USDT or cryptocurrencies in general, you have to be a very, very, very stupid criminal,” he said.
us election
Regarding the potential impact of the upcoming US election on digital asset regulation and Tether, Ardoino said he hopes whoever wins will understand the potential of cryptocurrencies and stablecoins.
“When it comes to stablecoins, I think it’s easier for them to understand,” he said. “China was selling Treasury bills, and we’re now buying them. I think the U.S. government and regulators have come to the conclusion, “Oh, that’s great.”
Tether’s U.S. Treasury holdings rank it among the top 20 countries, even surpassing Germany.
Asked about the political role of Cantor Fitzgerald and Howard Lutnick, Ardoino said his collaboration with them helped Tether go from being a $10 billion issuer using small banks to holding Treasury bills. He said it was part of a four-year journey to move into a larger operation that required an “Ivy League custodian.”
“What made the difference was that Mr. Howard (Lutnick) publicly asserted that his company had done its due diligence on Tether and told everyone, ‘We have the money,'” he said. said.
“We don’t expect political favors from anyone,” Ardoino said. He said Tether has done a lot of work to promote financial inclusion, and added, “Democrats should understand more than anyone else the need for financial inclusion.”
Meanwhile, the company is a big buyer of U.S. Treasuries, which should be attractive to Republicans interested in maintaining dollar supremacy.
“What we are building is meaningful for both parties,” he concluded. “In any case, I think (the U.S. regulations) will be a positive thing.”
