Tether CEO Squashes Rumors the SEC Wants to Take Down USDT

The chief executive officer (CEO) and former chief technology officer (CTO) of Tether, Paolo Ardoino, has squashed speculations that the US Securities and Exchange Commission (SEC) is planning to take down the stablecoin issuer. In a lengthy tweet thread on Monday, Ardoino stated that the rumors are aimed at “spreading fear about USDT.”

An uniformed CEO, leading a company being investigated by the SEC, launching a competitive stablecoin (cui prodest), is being reported spreading fear about USDt.

Let me give you an update on Tether USDt ecosystem safety.

USDt is the most used stablecoin in the world, with…

— Paolo Ardoino 🍐 (@paoloardoino) May 13, 2024

The Tether CEO’s response came in response to an earlier comment by Ripple Lab’s CEO, Brad Garlinghouse, on May 12, stating that the SEC was planning an attack on the largest stablecoin issuer. According to the Ripple CEO, increased assertions that Tether was aiding terrorist organizations and sanctioned countries to evade US financial restrictions were the reason for the speculated attack.

“The US government is going after Tether. That is clear to me. I view Tether as a very important part of the ecosystem, and I don’t know how to predict the impact it would have on the rest of the ecosystem,” Garlinghouse said in a podcast.

Ardoino Blows Hot

The former Tether CTO stated that the rumors came from “an uninformed CEO, leading a company being investigated by the SEC.” He further noted that the speculation should be taken lightly, considering it came from a competitor.

Ripple Lab launched a USD-pegged stablecoin in April to compete with the sector’s leaders, USDT and USDC. Garlinghouse stated during the launch that the firm ventured into the $150 market due to the “depegging” of other major stablecoins.

Ardoino insinuated that the rumors Garlinghouse was spreading might be a ploy to debase USDT and promote his firm’s stablecoin. Tether has a market cap in excess of $100 billion, asserting a dominance of almost 70% in the stablecoin market.

Ardoino Prides Tether’s Credentials

The Tether CEO further flaunted his firm’s credentials, hammering on the stablecoin issuer’s transparent operations and compliance with regulatory guidelines.

Ardoino noted that since Tether’s inception, it has collaborated with over 124 law enforcement agencies in more than 40 countries. Such collaboration has led to the firm blocking 198 wallets (90 of them from requests from US law enforcement) in the past 12 months.

The Tether CEO also noted that the stablecoin issuer has blocked over $1.3 billion in funds related to fraud and hacks since its launch in 2014. It has also frozen over $639 million in collaboration with US regulators.

Tether reported a record $4.52 billion profit in Q1, 2024. This was an impressive 46% increase quarter-to-quarter.