- Tether‘s reserves include $5.58 billion in Bitcoin (82,454 BTC), $3.87 billion in Gold (48.3 tons), and approximately $100 billion in U.S. Treasury bonds
- The stablecoin issuer faces allegations of a federal investigation regarding potential money laundering violations
- The Wall Street Journal reports that authorities are examining possible connections to illegal activities and sanctioned entities
- Tether CEO Paolo Ardoino denies the investigation claims, stating they are “unequivocally false”
- Critics continue to question whether Tether’s reserves fully back USDT’s $120 billion market cap
Tether Discloses Major Reserve Holdings Amid Regulatory Scrutiny
Tether CEO Paolo Ardoino has revealed detailed information about the company’s reserve composition, announcing substantial holdings across multiple asset classes. The disclosure comes at a time when the stablecoin issuer faces increased regulatory attention and questions about its backing.
According to Ardoino’s presentation at the PlanB event in Lugano, Switzerland, Tether holds 82,454 Bitcoin valued at $5.58 billion, 48.3 tons of gold worth $3.87 billion, and approximately $100 billion in U.S. Treasury bonds.
Federal Investigation Allegations Surface
The reserve disclosure coincides with a Wall Street Journal report claiming that the U.S. Attorney’s Office in Manhattan is investigating Tether. The report suggests authorities are examining whether third parties used the platform for:
- Drug trafficking
- Terrorism financing
- Hacking activities
- Support of sanctioned entities
Ardoino has strongly rejected these allegations, stating: “As we told the WSJ, there is no indication that Tether is under investigation. WSJ is regurgitating old noise. Full stop.”
Transparency and Compliance Efforts
The stablecoin issuer maintains that it actively cooperates with law enforcement to combat criminal activities. Since 2014, Tether has helped recover over $109 million connected to illicit activities, including fraud and sanctions evasion.
However, a recent analysis by Consumers’ Research has raised concerns about:
- Lack of complete reserve audits
- International operations in countries like Venezuela and Russia
- Potential facilitation of sanctions evasion
Market Impact and Reserve Questions
The cryptocurrency community continues to debate whether Tether’s reserves adequately support USDT’s $120 billion market capitalization. The stablecoin’s backing ratio remains a central point of discussion among investors and analysts.
Tether’s significance in the cryptocurrency ecosystem makes these discussions particularly relevant, as USDT serves as a primary trading pair on most cryptocurrency exchanges and provides crucial liquidity to the market.
Historical Context
This is not the first time Tether has faced scrutiny over its reserves. In 2021, the company reached a settlement with the New York Attorney General’s office, agreeing to provide quarterly reserve reports and pay an $18.5 million fine.
The current situation represents another chapter in the ongoing debate about stablecoin regulation and transparency in the cryptocurrency industry, with regulators increasingly focusing on the potential risks these digital assets might pose to financial stability.
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