Tether CEO Clarifies Asset Reserves Amid FUD

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Sujha Sundararajan

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Sujha Sundararajan

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October 28, 2024 07:52 EDT

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Stablecoin giant Tether CEO Paolo Ardoino has disclosed the company’s reserves following the Wall Street Journal’s allegations that Tether is under the federal government’s scrutiny over possible violations of sanctions and anti-money-laundering rules.

Speaking at the Plan ₿ Forum in Lugano, Switzerland, Ardoino gave an insight into Tether’s financial reserves.

On Sunday, Ardoino replied to Uquid’s CEO Tran Hung, that the stablecoin heavyweight holds 82,000 Bitcoin and 48 tonnes of gold in its reserves. Additionally, Tether also has $100 billion in US Treasuries.

The crypto community reacted to the CEO’s reply, with some highlighting the diversification of Tether’s reserves.

Users also noted that the gold reserves gives great “stability to USDT.” Meanwhile, questioned how Tether custodies the gold and whether they are audited.

“Is it allocated bullion? If yes, where is it vaulted? Is it audited? Or is it gold derivatives? like e.g. ETFs shares? Unallocated account? Futures/swaps/options?”

Tether CEO Denies WSJ’s Allegations Over Fed Govt’s Probe

Ardoino’s clarification over Tether’s reserves follows the WSJ article, which caused fear, uncertainty, and doubt (FUD). He has since tried to calm the fears, stressing that Tether regularly deals with law enforcement officials. Ardoino further claimed that the allegations “are unequivocally false.”

“At Tether, we deal regularly and directly with law enforcement officials to help prevent rogue nations, terrorists and criminals from misusing USDT,” he wrote in a separate X post on Saturday.

“We would know if we are being investigated as the article falsely claimed. Based on that, we can confirm that the allegations in the article are unequivocally false.”

Furthermore, the stablecoin firm has helped recover approximately $109 million in USDT from illicit activities, for 10 years. In a company statement in August, the CEO claimed that the company is “fully dedicated” to continue collaborating with law enforcement to combat fraud.

Besides, Ardoino has also recently appeared virtually to the DC audience during DC Fintech Week, noting how Tether cooperates with global governments and how the firm looks forward to regulations.