During the PlanB event in Lugano, Switzerland, CEO Paolo Ardoino revealed that the company holds $5.58 billion in Bitcoin (BTC), $3.87 billion in gold, and approximately $100 billion in U.S. Treasury bonds. The announcement comes after renewed calls for more transparency into Tether’s reserves and federal accusations in the United States over its practices with regard to compliance.
The event also saw the unveiling of a Satoshi Nakamoto statue. Tether gave more insight into its reserves, with Ardoino revealing that the company holds 82,454 BTC and 48.3 tons of gold in its vaults. Ardoino emphasized these holdings, are essential in maintaining the stability of USDT amid the rising demand for stablecoins.
Allegations and Tether’s Response to WSJ Report
The announcement comes after a Wall Street Journal report that the U.S. Attorney’s Office in Manhattan is investigating Tether for possible anti-money laundering regulation violations. Citing anonymous sources, the company has been accused of indirectly supporting illegal activities through third-party transactions linked to drug trafficking, terrorism financing, and Russian arms dealers.
But Tether has denied the report. Paolo Ardoino, reacting strongly to the WSJ report, said, “As we told the WSJ, there is no indication that Tether is under investigation. WSJ is regurgitating old noise. Full stop.” Ardoino further underlined that Tether has been working with law enforcement agencies for years now to prevent illicit financial activities.
Since 2014, Tether has helped recover more than $109 million worth of assets involved with fraud and breaches of sanctions. Those efforts notwithstanding, transparency concerns still prevail among the company’s critics about its operations and whether its reserves really are backing the $120 billion market cap of USDT.
Tether Faces Transparency and Operations Scrutiny
The WSJ report has continued ongoing debates about Tether’s regulatory practices and reserve audits. Its latest report faulted Tether for not conducting a proper, independent audit of its reserves and questioned whether it can fully back each USDT token with U.S. dollars or equivalent assets.
The critics also honed in on the fact that Tether operates globally, especially in Russia and Venezuela. The nonprofit said such operations by Tether could have enabled the evasion of sanctions around the world, further questioning its regulatory compliance.
Even with these challenges, Ardoino still assures the public that Tether is committed to transparency and compliance. He also added that indeed the company really has solid reserve backing diversified into Bitcoin, gold, and U.S. Treasury bonds to assure the stability of its digital currency.
Easing the Scrutiny Pressure?
With scrutiny around stablecoin issuers heating up, Tether has found itself at the epicenter of a regulatory debate. Though the WSJ allegations have reignited skepticism in some corners, the firm has taken steps to defend its transparency and collaboration with law enforcement. Through the latest reserve disclosure, Tether is trying to quell public outcry and shore up confidence in the stability of USDT.
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