- October 9, 2024
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
On Sunday, Tether, the issuing company behind the largest and most widely used stablecoin on the market USDT, marked a significant turning point by celebrating its 10th anniversary.
In a recent interview with FOX Business, Tether’s CEO Paolo Ardoino addressed widespread criticism of the company’s alleged lack of transparency regarding its reserves and recent achievements and plans.
Tether’s Surveillance Task Force
Ardoino, who stepped into the CEO role in 2023 after serving as the company’s chief technology officer for six years, outlined Tether’s strategies for revitalizing its brand in the coming months.
These efforts include forming partnerships with US law enforcement agencies and enhancing its collaboration with broker-dealer Cantor Fitzgerald and its CEO, Howard Lutnick.
Ardoino highlighted that Tether now collaborates with over 180 law enforcement agencies across 45 jurisdictions, including the FBI and the Department of Justice (DOJ).
This collaboration with law enforcement has been significant, with the Department of Justice acknowledging Tether’s assistance in freezing illicit funds. Recently, Tether partnered with other crypto firms, including Tron and TRM Labs, to establish a surveillance task force to combat financial crime associated with USDT.
Ardoino noted that Tether has some 350 million users worldwide, many of whom live in developing countries where they use USDT as a hedge against “weak monetary systems and unstable currencies”:
People are sick and tired of being subject to poor decisions from their governments in terms of monetary policies. We need to ensure our ecosystem remains safe so we can continue to help them.
Allegations Of Illicit Finance And Corruption
Despite this, Tether has faced persistent criticisms by regulators about its alleged involvement in illicit finance, including money laundering and ransomware payments. Allegations suggest that the company has enabled sanctioned countries, such as North Korea, Russia, and Iran, to avoid traditional financial systems, contributing to crime and terrorism.
This summer, Tether became the target of a multimillion-dollar advertising campaign by the nonprofit group Consumers Research, which accused the company of corruption through digital billboards in Times Square and television ads.
Addressing these criticisms, Ardoino acknowledged that Tether has been “naïve in the past,” failing to adequately respond to concerns, pointing out that the company did not establish a public relations team until 2022 ,“I feel sad because it’s a misrepresentation of a technology and a company that is helping hundreds of millions of people,” he said.
As part of its efforts to combat illicit activities, Tether has blocked over $1.8 billion in USDT from more than 1,850 crypto wallets, coordinating closely with US agencies in 636 of these actions.
Hopeful For Shifting Attitudes Toward Digital Assets
During the interview, Ardoino also expressed openness to an audit by one of the “Big Four” accounting firms in the US but pointed to the current regulatory environment as a barrier.
The CEO highlighted the challenges posed by anti-crypto lawmakers, particularly mentioning Massachusetts Senator Elizabeth Warren, which complicates the ability of auditors to engage with crypto firms, especially those based outside the US.
Looking ahead, Ardoino is hopeful that the outcome of the upcoming US election in November will shift regulatory attitudes toward the digital asset market:
When I was a kid, I remember how the US was king of every new technology and discovery. For the first time in history, the US has dropped the ball on probably one of the most revolutionary technologies of our time.
Featured image from DALL-E, chart from TradingView.com
