Tether CEO Addresses Reserve Assets, Refutes Investigation Claims

At the recent PlanB conference in Lugano, Switzerland, Tether CEO Paolo Ardoino revealed an in-depth overview of the assets backing Tether’s USDT. He disclosed that Tether holds approximately $100 billion in U.S. treasuries, over 82,000 Bitcoin—worth around $5.5 billion at current prices—and 48 tons of gold.

Tether’s Transparency Push

These disclosures came on the heels of a Wall Street Journal article. It claimed that U.S. authorities were investigating Tether for potential anti-money laundering and sanctions violations.

Ardoino responded swiftly, labeling the article’s claims as misleading. “There is no indication that Tether is under investigation,” Ardoino stated firmly. “WSJ is regurgitating old noise. Full stop.” He emphasized Tether’s proactive cooperation with law enforcement, underscoring that any investigation would be known to them.

To date, the stablecoin issuer has collaborated with authorities to help recover over $109 million linked to illicit activities, such as sanctions evasion and cybercrime, since its launch in 2014.

Regulatory Challenges

Addressing U.S. regulatory concerns, Ardoino critiqued the current approach to crypto policy, noting that slow legislative action has pushed many innovative firms out of the country. He further voiced optimism that the regulatory landscape might evolve positively after the 2024 U.S. Presidential election, potentially realigning the nation’s crypto sector with other, more welcoming jurisdictions. His comments reflect a broader sentiment in the industry, where regulatory delays generally mean stifling innovation, leading to capital and talent migration.

In October 2024, USDT, Tether’s flagship stablecoin, reached $120 billion market capitalization, marking it as a crucial instrument for liquidity and stability in the crypto space. For investors, this milestone also signals a potentially bullish period for the market as USDT’s growing role underpins trading activity and stabilizes investor confidence in volatile times.

Tether’s recent reserve disclosures and Ardoino’s assertive dismissal of investigation rumors appear aimed at shoring up investor confidence amid heightened scrutiny. As crypto markets respond to regulatory developments and investor sentiment, Tether’s actions may indeed influence broader market dynamics.