Tether CEO Paolo Ardoino addressed the recent controversy surrounding the company’s USDT stablecoin reserves at Lugano’s PlanB event in Switzerland. This came after The Wall Street Journal (WSJ) reported claims that the U.S. government was investigating Tether for potential violations of anti-money laundering laws and U.S. sanctions.
Breakdown of Tether’s Reserves
During his presentation, Ardoino shared details about the assets backing Tether’s stablecoin, USDT. According to the CEO, Tether holds approximately $100 billion in U.S. Treasuries, over 82,000 Bitcoin (valued at around $5.5 billion based on current prices), and 48 tons of gold. These assets are part of Tether’s reserve portfolio, which backs the stablecoin and ensures its 1:1 peg to the U.S. dollar.
This clarification comes in the wake of the WSJ article, published on October 25, which claimed unnamed sources indicated that Tether was under investigation by U.S. authorities. Ardoino strongly refuted these claims, calling them outdated and inaccurate.
Tether’s Response to WSJ Allegations
Ardoino was quick to dismiss the WSJ’s report, stating, “As we told the WSJ, there is no indication that Tether is under investigation. WSJ is regurgitating old noise. Full stop.” He emphasized that Tether has consistently cooperated with law enforcement to combat illicit activities involving USDT, such as cybercrime, sanctions evasion, and fraud.
Tether claims to have assisted in recovering around $109 million related to illicit activities since 2014. Ardoino underscored that the firm works closely with authorities, adding that any official investigation would be communicated to them directly, contrary to the WSJ’s article.
Regulatory Criticism and Market Confidence
In addition to addressing the allegations, Ardoino voiced his concerns about the U.S. regulatory environment for crypto. He argued that U.S. policies lag behind those of other countries, which has led to a shift of digital asset firms relocating to more favorable jurisdictions. Nevertheless, he expressed optimism that regulatory clarity would improve after the 2024 U.S. presidential election.
Despite the controversy, Tether’s USDT stablecoin continues to thrive, with its market capitalization reaching an impressive $120 billion in October 2024. Many investors see this as a bullish indicator, suggesting that demand for stablecoins could drive crypto prices higher in the near future.
