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Tether CEO Responds to Ripple Allegations
Tether CEO Paolo Ardoino recently addressed statements made by Ripple’s CEO regarding the US government’s scrutiny of USDT. While not directly mentioning Ripple or Brad Garlinghouse, Ardoino’s comments seemed to allude to concerns raised by Ripple about potential disruptions in the cryptocurrency market due to investigations into Tether.
Ardoino’s Response
In a post on X, Ardoino criticized an “uninformed CEO” from a company under SEC investigation for launching a stablecoin that could compete with USDT. He dismissed the fear being spread about USDT and emphasized the safety of the Tether ecosystem.
Ripple did not provide a comment to Cryptowire at the time of press.
Concerns and Criticisms
Garlinghouse’s remarks highlighted concerns surrounding Tether’s transparency and potential links to illicit activities. Reports suggest that Tether has been used by terrorist organizations and countries facing sanctions to circumvent economic restrictions.
Regulators have also expressed worries about offshore-issued stablecoins like Tether, citing risks related to financial crimes. The increased use of stablecoins for crypto transactions has raised questions about issuer transparency and regulatory oversight.
Compliance and Safety Measures
In defense of Tether, Ardoino emphasized the stablecoin’s global usage and its role in providing financial services to millions of users, especially in emerging markets. He highlighted Tether’s price stability, liquidity reserves, custodianship, and compliance efforts.
Ardoino pointed out Tether’s compliance record, including cooperation with law enforcement and adherence to regulatory requirements. He mentioned actions taken by Tether to block potentially illicit funds, with a significant amount linked to scams and money laundering.
Tether has faced criticism in the past for lack of transparency regarding USDT’s backing assets. However, the company has taken steps to address these concerns, such as publishing quarterly audits by independent third parties.
Following a fine imposed by the CFTC in 2021 for misleading customers about reserves, Tether has worked to enhance transparency and regulatory compliance.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
