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A recent article by The Wall Street Journal stirred up concerns regarding an alleged U.S. government investigation into Tether, the issuer of USDT and the world’s largest stablecoin. However, Tether CEO Paolo Ardoino directly addressed these claims during his appearance at the PlanB event in Lugano, Switzerland, offering transparency on the company’s reserves amidst these allegations.
Tether Faces Investigation in 19th Case
The U.S. government is reportedly investigating Tether for potential involvement in illicit activities, marking the 19th investigation into the company by U.S. authorities. According to the Wall Street Journal, the Manhattan U.S. Attorney’s office is assessing whether Tether has been linked to illegal transactions due to its transaction anonymity and resistance to reversals.
While Tether has faced legal challenges since 2012, including probes into its sibling company Bitfinex, these inquiries have done little to impact Tether’s market dominance. Following events like the temporary depegging of USDC in March 2023, Tether continues to expand its presence, bolstered by major backers such as Cantor Fitzgerald.
Tether’s Reserves and Collaboration with Law Enforcement
During his presentation, Ardoino disclosed the substantial asset reserves backing Tether’s USDT stablecoin, revealing holdings of:
$100 billion in U.S. Treasuries
Over 82,000 Bitcoin, valued around $5.5 billion
48 tons of gold
He also highlighted Tether’s collaborative efforts with law enforcement, helping to recover approximately $109 million in funds linked to fraud, sanctions violations, and cybercrime since 2014. Responding to recent criticisms and regulatory scrutiny, Ardoino stated, “There is no indication that Tether is under investigation. WSJ is rehashing old allegations.”
The Road Ahead for Tether and U.S. Crypto Regulations
Despite current regulatory challenges and criticisms of U.S. crypto policies, Ardoino expressed hope for a more favorable regulatory environment post-2024 U.S. presidential election. As of October, Tether’s USDT reached a market cap of $120 billion, a figure that continues to inspire investor confidence, with positive implications for the broader crypto market.
Tether’s steadfast approach to transparency and asset backing may bolster market stability, but the ongoing scrutiny reflects the legal complexities surrounding stablecoins in today’s digital asset ecosystem. With the investigation unfolding, the crypto community is closely watching how these developments could impact Tether and the industry as a whole.
Disclaimer: Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
The post Tether CEO Reveals USDT’s Robust Asset Backing Amidst Ongoing Scrutiny appeared first on Cryptocurrency News & Trading Tips – Crypto Blog by Changelly.
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