Tether CEO Paolo Ardoino has provided a breakdown of the reserves backing the USDT stablecoin. He revealed that Tether holds $5.58 billion in Bitcoin, $3.87 billion in gold, and around $100 billion in U.S. Treasury bonds. This announcement comes at a time when the company is facing allegations of a federal investigation and increasing scrutiny regarding its reserve backing. Responding to online speculation, Ardoino clarified that Tether’s reserves also include significant holdings in U.S. Treasury bonds, in addition to gold and Bitcoin.
These developments coincide with a recent report by the Wall Street Journal claiming that the U.S. Attorney’s Office in Manhattan is investigating Tether for potential money laundering violations. The article suggests that authorities are examining whether Tether has been used to support illegal activities, including drug trafficking, terrorism financing, and hacking. The report also implies that Tether may have indirectly supported sanctioned entities.
Tether has denied these claims, with Ardoino stating that there is no indication of Tether being under investigation. He emphasized the company’s collaboration with law enforcement to combat criminal activities, noting that Tether has played a role in recovering over $109 million in assets linked to illicit activities. The CEO described the allegations in the article as “unequivocally false.”
However, the report has further drawn attention to Tether’s transparency and regulatory practices. Critics have long raised concerns about whether Tether’s reserves fully back the value of USDT. A recent report by Consumers’ Research highlighted the lack of a full audit of Tether’s reserves and raised questions about the company’s activities in countries like Venezuela and Russia, suggesting a potential evasion of international sanctions.