Tether CEO Details Reserves Backing USDT, Dismisses DoJ Probe Claims

Updated: 28 October 2024

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Tether CEO Paolo Ardoino has provided a breakdown of the company’s reserves following a report from the Wall Street Journal (WSJ) that said the stablecoin issuer was under investigation by the US Department of Justice (DoJ).

Speaking at Lugano’s PlanB event in Switzerland, Ardoino said Tether holds $100 billion in US Treasuries, over 82,00 Bitcoin and 48 tons of gold for its USDT reserves.

Tether CEO Says WSJ Article Is “Regurgitating Old Noise”

The Tether CEO’s appearance follows an Oct. 25 article by the WSJ, which claimed the company was under investigation by the DoJ for allegedly violating anti-money-laundering laws and US sanctions.

As we told to WSJ there is no indication that Tether is under investigation. WSJ is regurgitating old noise. Full stop.

— Paolo Ardoino 🤖🍐 (@paoloardoino) October 25, 2024

Ardoino responded to the publication in an Oct. 25 post on X, stating that the company has told the WSJ that “there is no indication that Tether is under investigation.”

The WSJ is just trying to spread fear, uncertainty and doubt around the leading stablecoin by market cap, he said, adding that the publication is just “regurgitating old noise.”

Tether Says It Helped Law Enforcement Recover $109 Million Since 2014

Responding to the international sanctions violations the company is allegedly facilitating, Ardoino said that Tether regularly deals “directly with law enforcement officials to help prevent rogue nations, terrorists and criminals from misusing USDT.”

According to the stablecoin issuer, it has helped law enforcement recover approximately $109 million used in illicit activities since 2014.

The company’s token currently has a market cap of $120.18 billion. This not only ranks it as the largest stablecoin by capitalization but also as the third largest crypto token overall behind Bitcoin (BTC) and Ethereum (ETH).

Tether’s main competitor is Circle’s USD Coin (USDC), with a market cap of over $34.64 billion. In terms of ranking, USDC comes in at number 6 overall in the crypto space.