Bitrabo Editorial
On Sunday, Tether, the organization behind the most prominent stablecoin, USDT, celebrated its 10-year milestone, marking a vital occasion for the company.
In a recent discussion with FOX Business, Tether’s CEO Paolo Ardoino responded to ongoing concerns regarding the firm’s transparency about its reserves, as well as its achievements and future goals.
Tether’s Enhanced Security Measures
Taking over as CEO in 2023 after working as the chief technology officer for six years, Ardoino shared Tether’s plans to refresh its public image in the upcoming months.
This strategy involves building alliances with US law enforcement and strengthening the partnership with broker-dealer Cantor Fitzgerald and its CEO, Howard Lutnick.
According to Ardoino, Tether is currently working with over 180 law enforcement organizations across 45 jurisdictions, which include the FBI and the Department of Justice (DOJ).
This collaboration is crucial, with the DOJ recognizing Tether’s role in halting illegal financial activities. Recently, Tether joined forces with other cryptocurrency companies like Tron and TRM Labs to create a task force aimed at curbing financial crimes tied to USDT.
Ardoino mentioned that Tether serves around 350 million users globally, especially in developing nations where USDT is utilized as protection against “unstable monetary systems and weak currencies”:
People are frustrated by poor monetary policies from their governments. We need to keep our environment secure to continue supporting them.
Concerns Over Financial Misconduct
Nonetheless, Tether faces ongoing scrutiny from regulators regarding its supposed connections to illicit financial activities, including money laundering and ransomware funding. Claims have surfaced that Tether may have aided sanctioned countries like North Korea, Russia, and Iran in circumventing conventional financial systems, potentially fostering crime and terrorism.
This summer, Tether was subjected to a significant advertising campaign led by the nonprofit group Consumers Research, which accused the firm of corrupt practices using digital billboards in Times Square and on television.
In response to these allegations, Ardoino admitted that Tether had previously been “naïve,” not addressing concerns adequately. He noted that the company didn’t form a public relations team until 2022, stating, “It’s disheartening because it misrepresents a technology and a company that is helping millions.”
To tackle illegal activities, Tether has frozen over $1.8 billion in USDT across more than 1,850 wallets, working closely with US authorities in 636 of these cases.
Hopeful for Shifting Perspectives on Digital Currency
During the interview, Ardoino also showed willingness for an audit by a leading US accounting firm, but highlighted that current regulatory standards create obstacles.
He pointed out complications arising from anti-crypto lawmakers, particularly referring to Massachusetts Senator Elizabeth Warren, which makes it difficult for auditors to interact with cryptocurrency companies, especially those outside the US.
Looking toward the future, Ardoino is optimistic that the results of the upcoming US elections in November will influence regulatory perspectives on the digital asset sector:
When I was younger, I recall how the US led in every new technology. For the first time ever, the US has fallen behind in what could be one of the most transformative technologies of our era.
Image sourced from DALL-E, with chart data from TradingView.com