Tether CEO Paolo Ardoino provided transparency about the company’s reserve assets amid rumors that the company is under surveillance by U.S. authorities.
According to Ardoino, Tether currently holds a staggering $100 billion in U.S. Treasuries, more than 82,000 Bitcoins worth approximately $5.5 billion, and 48 tons of gold backing its USDT stablecoin. That’s what it means. The breakdown comes as Ardoino denies a Wall Street Journal report suggesting Tether may be facing scrutiny for anti-money laundering and sanctions violations, and claims that Tether is under investigation. This happened in response to a direct rebuttal to
Ardoino criticized the Wall Street Journal’s report that Tether regularly cooperates with law enforcement agencies to stop illegal activity and said that since 2014, Tether has committed more than 100 million people related to fraud and other illegal activities. It added that it also contributed to the recovery of $9 million.
“We work regularly and directly with law enforcement authorities to prevent the misuse of USDT by rogue states, terrorists, and criminals. They will know if they are being investigated.”
Tether’s CEO also noted that he sees the regulatory approach in the United States as lagging, which has forced many crypto companies to seek friendlier jurisdictions overseas. He said he was thinking about it. But he is hopeful that the regulatory stance could change after the 2024 U.S. presidential election.
US authorities are reportedly investigating Tether, the operator of the world’s largest stablecoin USDT, for allegedly violating anti-money laundering regulations and sanctions.
The Wall Street Journal article said the investigation focused on Tether’s role in enabling illegal activities such as terrorism, drug trafficking and cybercrime. The Manhattan federal prosecutor’s office and the U.S. Treasury Department are reportedly involved, with the latter considering sanctions that could prevent U.S. companies from doing business with Tether.
Tether’s CEO categorically denied the allegations on social media, calling the claims “old noise” and rejecting the Journal’s report as speculative.
This isn’t the first time Tether has come under scrutiny. The Commodity Futures Trading Commission previously alleged that Tether made misleading claims about its reserves. However, Tether insists it adheres to legal standards and actively cooperates with global law enforcement agencies to ensure its platform is not misused.
