This announcement comes at a time when Tether faces scrutiny over the transparency of its reserves amid ongoing investigation reports and speculation.
Tether’s Diversified Reserves
At the forum, Ardoino stressed that Tether’s diversified asset holdings are crucial for maintaining stability in chaotic market conditions.
Tether’s reserve strategy includes 82,454 BTC, valued at approximately $5.58 billion at current market rates, along with 48.3 tons of gold, amounting to around $3.87 billion. Together, these assets total approximately $9.45 billion.
However, some observers questioned whether this amount adequately backs Tether’s market capitalization, which currently stands at around $120 billion. Addressing this confusion, Ardoino clarified that Tether’s reserves also encompass $100 billion in U.S. government bonds, which are vital for financial stability and liquidity.
Addressing Transparency Concerns
The recent announcement includes increased scrutiny on Tether’s reserve practices. Recently, Cyber Capital founder, for instance, alleged that USDT might be involved in activities akin to a “multibillion-dollar scam.”
Further, on Oct. 25, a Wall Street Journal article indicated that the U.S. Attorney’s Office for the Southern District of New York is investigating Tether for potential illicit activities tied to its usage. These allegations involve claims that Tether may have been used to facilitate money laundering and to fund sanctioned groups, including terrorist organizations.
However, Tether has publicly dismissed the claims, characterizing them as “Irresponsible Reporting.” Ardoino reinforced this by stating there is no indication that Tether is under investigation, emphasizing the company’s cooperation with law enforcement.
At Tether, we deal regularly and directly with law enforcement officials to help prevent rogue nations, terrorists and criminals from misusing USDt. We would know if we are being investigated as the article falsely claimed. Based on that, we can confirm that the allegations in…
— Paolo Ardoino 🤖🍐 (@paoloardoino) October 25, 2024
Despite the allegations, Tether earlier claimed that it has maintained transparency and has engaged with regulators to ensure compliance.
