Tether CEO Breaks Silence On Federal Probe Allegations

Paolo Ardoino, the CEO of Tether, recently addressed concerns about the firm’s reserves and regulatory scrutiny during the Plan ₿ Forum in Lugano, Switzerland. Ardoino revealed that Tether’s reserve backing includes $100 billion in U.S. Treasuries. This figure represents more than 82,000 Bitcoin (valued at around $5.5 billion), and 48 tons of gold. This announcement followed a Wall Street Journal report claiming U.S. authorities are investigating Tether.

Tether’s Criticizes WSJ For Creating FUD

Tether, the issuer of the stablecoin USDT, has a market capitalization of approximately $120 billion. This is far ahead of its closest competitor, USDC, valued at $34.65 billion. 

Ardoino shared these reserve details to dispel what he called “fear, uncertainty, and doubt” (FUD) caused by the WSJ article. He criticized the report, stating that the allegations were recycled from previous speculations and not based on new evidence.

CEO’s Response to WSJ Investigation Claims

The WSJ article, published on October 25, claimed that U.S. authorities were investigating Tether for potential violations of anti-money laundering laws and sanctions. Ardoino firmly denied these claims, stating:

As we told the WSJ, there is no indication that Tether is under investigation. WSJ is regurgitating old noise.

He emphasized that Tether regularly collaborates with law enforcement agencies to block illicit activities involving USDT, having recovered about $109 million over the past decade.

In addition, despite regulatory challenges, Tether is dominating the stablecoin market. Ardoino also criticized the slow pace of crypto regulation in the U.S., suggesting it has driven innovation overseas. However, he expressed optimism that regulatory clarity could improve after the 2024 U.S. presidential election.

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At the same event, Ardoino introduced Tether’s new AI software development kit (SDK). He explained that the SDK focuses on privacy, using peer-to-peer technology to run applications across various devices—from smartphones to mainframes powered by H100 chips.

Notably, the SDK supports models like Marian and Llama and is designed for decentralized use, allowing developers to manage data structures locally. Ardoino mentioned that the SDK would be open-sourced after thorough testing.