Good day everyone,
I hope you are all having a good day, welcome to CryptoGod-1's blog on all things crypto. In this post I will be looking at how the CEO of stablecoin giant Tether has disclosed the company’s reserves following allegations by the Wall Street Journal that the company is under the federal government’s scrutiny.
Tether Reserves
The CEO of Tether, Paolo Ardoino, has disclosed the company’s reserves. This happened on Sunday following allegations by the Wall Street Journal (WSJ) that Tether is under federal government scrutiny regarding possible violations of sanctions and anti-money-laundering rules. The article notes that the investigation is being run by the Manhattan U.S. attorney's office. Ardoino gave this insight into the company's financial reserves while speaking at the Plan ₿ Forum in Lugano, Switzerland.
Adriano replied to Uguid's CEO Tran Hung when he noted that the stablecoin company holds 82,000 Bitcoin and 48 tonnes of gold in its reserves. He also noted that Tether has $100 billion in US Treasuries. The crypto community were quick to react to the reply from the CEO, giving some interesting views o the diversification of Tether’s reserves.
Users stated that the gold reserves gives great “stability to USDT” while others questioned how Tether custodies the gold and whether they are audited. One user stated:
“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?”
The clarification by Adriano following the WSJ article alleyed fears which had began to mount. The fear, uncertainty, and doubt (FUD) has been somewhat calmed down as the CEO stressed that Tether regularly deals with law enforcement officials. Adriano went on to further state that the allegations “are unequivocally false.” He stated in a post on X on Saturday:
“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.”
The stablecoin firm has managed to help recover approximately $109 million in USDT from illicit activities over the last 10 years. As part of a company statement back in August, the CEO noted that the company is “fully dedicated” to continue collaborating with law enforcement to combat fraud.
Have a great day.
Peace. CryptoGod-1.
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