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Tether CEO Reveals Detailed Breakdown of $109bn Reserve Holdings, Denies Accusations by WSJ

Tether CEO Reveals Detailed Breakdown of $109bn Reserve Holdings, Denies Accusations by WSJ

Oct, 29 2024 12:42
Tether CEO Reveals Detailed Breakdown of $109bn Reserve Holdings, Denies Accusations by WSJ

Tether CEO Paolo Ardoino has provided a comprehensive overview of the company's reserves, disclosing holdings of $5.58 billion in Bitcoin, $3.87 billion in gold, and approximately $100 billion in U.S. Treasury bonds. The disclosure comes amid renewed scrutiny of the world's largest stablecoin issuer.

Speaking at the PlanB event in Lugano, Switzerland, Ardoino revealed that Tether holds 82,454 BTC and 48.3 tons of gold. The presentation coincided with the company's unveiling of a Satoshi Nakamoto statue.

The disclosure follows a Wall Street Journal report alleging a U.S. federal investigation into potential money laundering violations. The Manhattan U.S. Attorney's Office is reportedly examining whether third parties used Tether for illicit activities, including drug trafficking and terrorism financing.

Ardoino firmly rejected these allegations. "As we told the WSJ, there is no indication that Tether is under investigation," he stated. "WSJ is regurgitating old noise. Full stop."

The company maintains it has actively supported law enforcement efforts. Since 2014, Tether reports assisting in recovering over $109 million linked to illegal activities such as fraud and sanctions evasion.

Critics, including nonprofit organization Consumers' Research, have raised concerns about Tether's transparency. Their recent report questioned the absence of a full audit and highlighted potential sanctions evasion risks in countries like Venezuela and Russia.

The reserve breakdown addresses long-standing questions about USDT's dollar peg backing. With a market capitalization exceeding $120 billion, the stablecoin's reserve composition has faced persistent scrutiny from market participants and regulators.

Industry observers note that this level of detail from Tether is unusual. The disclosure represents one of the most comprehensive public breakdowns of the company's reserve holdings to date.

Market analysts suggest the timing of this disclosure, amid regulatory attention, reflects growing pressure for transparency in the stablecoin sector. The reserve composition could have significant implications for the broader cryptocurrency market, given USDT's central role in digital asset trading.

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