Tether CEO Breaks Reserves Backing USDT Stablecoin

Tether CEO Paolo Ardoino has revealed details about the stablecoin issuer’s reserves, revealing that it has $5.58 billion in Bitcoin (BTC), $3.87 billion in gold, and roughly $100 billion in Treasury bonds. US Treasury

The breakdown comes as the company faces allegations from a federal investigation in the US and renewed questions about its backup support.

Breakdown of the reservation

During PlanB’s event in Lugano, Switzerland, where the company unveiled a statue of Satoshi Nakamoto, the CEO revealed that Tether’s reserve includes 82,454 BTC and 48.3 tons of gold.

A slide from the presentation, later shared by Uquid CEO Tran Hung on X, sparked a discussion online. One user questioned whether these assets were enough to fully support USDT’s recently recorded $120 billion market cap.

In response to online speculation, Ardoino clarified that the company’s holdings also include significant holdings in US Treasuries, in addition to gold and Bitcoin.

This announcement coincides with a recent report from the Wall Street Journal (WSJ) alleging that the US Attorney’s office in Manhattan is investigating Tether for possible money laundering violations. According to the article, unnamed sources claim that authorities are investigating whether the company has been used by third parties to support illegal activities, including drug trafficking, terrorist financing and piracy.

It also suggests that investigators are looking into whether Tether may have indirectly supported sanctioned entities such as Russian arms dealers and Hamas.

Tether CEO responds to allegations

However, the crypto company has denied the WSJ’s claims. Ardoino also answered them by stating:

“As we told the WSJ, there is no indication that Tether is under investigation. The WSJ is regurgitating old noise. Full stop.”

He emphasized that the stablecoin issuer maintains a collaborative relationship with law enforcement to counter criminal activities. According to an August statement, since 2014, Tether has helped recover more than $109 million in assets linked to illicit activities such as fraud and sanctions evasion. The CEO concluded by describing the article’s claims as “unequivocally false.”

Meanwhile, the report has heightened scrutiny over the company’s transparency and regulatory practices, particularly as critics have long questioned whether its reserves fully support USDT’s dollar peg.

A recent report by non-profit group Consumers’ Research criticized Tether’s lack of a full audit of its reserves and raised concerns about its international activities.

The organization also questioned the company’s activities in countries such as Venezuela and Russia, suggesting that its operations there may have allowed it to evade international sanctions.

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