Tether CEO Ardoino Rebuffs Ripple Chief's Claims, Defends Company Compliance
Summary:
Tether CEO Paolo Ardoino has defended the company against comments made by Ripple CEO Brad Garlinghouse suggesting a possible legal attack against Tether by U.S. regulators. In a series of responses on a social media platform, Ardoino declared Tether's robust compliances, liquidity, and cooperation with multiple enforcement agencies worldwide. Ardoino also critiqued Ripple’s tactics, as they face their own investigation by the SEC and plan to launch a rival stablecoin.
Paolo Ardoino, Tether's Chief Executive Officer, has rebutted the allegations made by Brad Garlinghouse, Ripple's CEO, regarding the implied threat of Tether being targeted by U.S. authorities. Ardoino utilized social media outlet X to mitigate fears about possible legal actions against the company and reproached Garlinghouse for spreading anxiety concerning USDt. Ardoino claimed that Garlinghouse's utterances were paradoxical, considering the ongoing SEC probe into Ripple and its intention to release a rival stablecoin. Source: Paolo Ardoino. Ripple aims to join the stablecoin sector in 2024, despite its current legal tussle with the Securities and Exchange Commission.
Ardoino pointed out that USDT, being the leading stablecoin based on market share serving millions globally, has proven instrumental in enhancing banking services in emerging economies and exhibits strong performance metrics: “USDT, over time, established price stability, liquid reserves, premium custodian services, and strict compliance protocols.”
He described Tether's compliance-driven approach and wide acceptance attributes. Tether has partnered with 124 law enforcement bodies in more than 40 nations and frozen assets north of $1.3 billion since its inception, associated with frauds, cyber-attacks, and money laundering. The frozen assets include over $639 million in collaboration with U.S. law enforcement.
Additionally, he shared that Tether has voluntarily blocked wallets in response to 198 requests from law enforcement in the past 12 months, 90 of which were from U.S. agencies. Over the past three years, there were a total of 339 such requests, including 158 from U.S. agencies.
Wrapping up his statement, Ardoino made a wry comment about rivaling stablecoin issuers. He stated that Tether works directly with law enforcement bodies, unlike other issuers that necessitate a court order: “Allegedly ‘more compliant’ stablecoins demand judicial approval, granting cybercriminals ample time to displace funds."
Ardoino's reaction followed Garlinghouse’s warning of a “100%” likelihood of an impending cryptocurrency-related black swan affair during a podcast. The Ripple CEO alluded to Tether being a target for the U.S. government without providing specific reasons. Nonetheless, Garlinghouse conceded Tether's significant position in the cryptocurrency market.
Crypto enthusiasts are interpreting the Ripple CEO's prognostic remarks as a veiled indication of upcoming regulatory action by U.S. authorities. Some are labeling it as a competitive maneuver, as Ripple plans to introduce its stablecoin soon.
Cointelegraph sought comments from Tether but received no response at the time of publication. Magazine: Depegging, bank runs, and other potential risks surrounding Unstablecoins are rising concerns.
Published At
5/13/2024 12:51:18 PM
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