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Clearing the Air: Tether CEO Reveals Reserves Backing USDT

Key Takeaways

  • Tether's CEO disclosed the company's asset reserves to counteract allegations of legal violations;
  • The USDT stablecoin is backed by $100 billion in US Treasuries, over 82,000 Bitcoins, and 48.3 tons of gold;
  • Tether denies any ongoing investigations and highlights its cooperation with law enforcement to prevent illegal activities involving USDT.
Clearing the Air: Tether CEO Reveals Reserves Backing USDT

Facing allegations of regulatory violations, Paolo Ardoino, the CEO of Tether, disclosed information about the company's asset reserves to dispel uncertainty surrounding the company's financial stability.

Ardoino revealed that the USDT USDT $0.9994 stablecoin is supported by approximately $100 billion in US government bonds, over 82,000 Bitcoin BTC $101,661.24 valued at around $5.6 billion, and 48.3 tons of gold.

These revelations came in response to a Wall Street Journal report suggesting that US authorities were investigating Tether for potential breaches of anti-money laundering laws and sanctions.

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The allegations presented in the WSJ article had created a climate of fear and doubt. Ardoino denied any claims, stating:

At Tether, 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 being investigated as the article falsely claimed. Based on that, we can confirm that the allegations in the article are unequivocally false.

Beyond the recent media scrutiny, Tether has previously faced criticism from consumer advocacy groups like Consumers' Research. These organizations have questioned the transparency of the reserves backing USDT, urging the company to provide more detailed disclosures.

By openly sharing the composition of its reserves, Tether aims to address these concerns and reinforce its commitment to transparency and regulatory compliance.

Gode S. Web3 Market Analyst
Gode is a Web3 Market Analyst who researches the most important industry events and interprets how they affect the wider Web3 space. Her formal education in media culture & digital rhetoric allows her to employ a methodical approach to evaluating critical Web3 news data, including large-scale events and the wider social sentiment within the ecosystem.
Gode is a mutilingual professional, having studied in multiple universities all across Europe. This allows her to have a one-of-a-kind opportunity to analyze Web3 social sentiments spanning different cultures and languages and, in turn, develop a much deeper understanding of how the Web3 space is growing within different communities. With the rest of her team, Gode works to identify crucial crypto news patterns and provide unbiased and data-driven information.
Gode’s passions include working and communicating with people, and when she’s not researching Web3 news, she spends her time traveling and watching true crime documentaries.

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