Tether CEO Paolo Ardoino has been transparent about the company’s reserve assets, amid swirling rumors that Tether could be monitored by US authorities.
According to Ardoino, Tether currently holds a the staggering sum of $100 billion in US Treasuries, more than 82,000 Bitcoins worth around $5.5 billion and 48 tonnes of gold to back its USDT stablecoin. The breakup comes as Ardoino directly refuted claims that Tether was under investigation, dismissing a Wall Street Journal report suggesting the company could face scrutiny for sanctions violations against money laundering and sanctions.
Ardoino criticized the Wall Street Journal’s reporting, adding that Tether regularly worked with law enforcement to thwart illegal activity and even helped recover $109 million linked to fraud and other illicit actions since 2014 .
He noted: “We deal regularly and directly with law enforcement officials to help prevent rogue nations, terrorists and criminals from misusing USDT. We would know if we are under investigation as the article falsely claims.
CEO of Tether also highlighted what he sees as a lagging regulatory approach in the United States, which he says has forced many crypto companies to seek friendlier jurisdictions abroad. He hopes, however, that regulatory attitudes could change after the 2024 U.S. presidential election.
US authorities are reportedly investigating Tether, the company behind the world’s largest stablecoin, USDTfor allegedly violating anti-money laundering regulations and sanctions.
According to a Wall Street Journal article, the investigation is focusing on Tether’s role in illicit activities such as terrorism, drug trafficking and cybercrime. The U.S. Attorney’s Office in Manhattan 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 strongly denied the allegations on social media, calling them “old noise” and dismissing the WSJ report as speculative.
This is not the first time Tether has come under scrutiny. The Commodity Futures Trading Commission previously alleged that Tether made misleading statements about its reserves. However, Tether maintains that it complies with legal standards and proactively works with global law enforcement to ensure that its platform is not misused.