Tether disputes Ripple’s CEO and hits back at him over his recent comment that the US government is going after Tether.
In response to recent remarks by Ripple CEO Brad Garlinghouse that the United States government is “going after” the largest stablecoin issuer in the world, Tether, Paolo Ardoino, the CEO of Tether, has retaliated.
Arduino addressed prospective U.S. agency action against the firm on the social media platform X, where he criticized Garlinghouse for spreading “fear about USDT.”
Arduino argued that Garlinghouse’s remarks lacked sincerity, considering Ripple’s ongoing investigation by the U.S. Securities and Exchange Commission and its efforts to introduce a competing stablecoin to Tether’s USDT, currently trading at a $1.00 decline.
USDT is the largest stablecoin by market share, with millions of users worldwide, and it has assisted bank users in developing economies, according to the CEO of Tether. His further statement was:
“USDT proved over time to have strong price stability, highly liquid reserves, top tier custodians and profound compliance.”
Ardonio also enumerated several characteristics contributing to USDA’s compliance and widespread adoption as a stablecoin. He said Tether has blocked assets worth more than $1.3 billion associated with hacking, money laundering, and fraud in collaboration with 124 law enforcement agencies in over 40 countries. In collaboration with U.S. law enforcement, Tether blocked over $639 million of the $1.3 billion in assets that were blocked.
Ardonio further disclosed that Tether has voluntarily complied with 198 requests to block wallets from law enforcement over the past year, with 90 of those requests emanating from law enforcement agencies in the United States. In the preceding three years, it has granted 158 compliance requests from law enforcement agencies in the United States out of a total of 339 granted.
Ardonio apologized in the final line of his tweet regarding rival stablecoin issuers. He says Tether collaborates with law enforcement agencies directly, whereas other issuers only abide by judicial mandates.
While other stablecoins, although they claim to be ‘more compliant,’ they require a judge order, allowing hackers, scammers and criminals a long time to move funds around.”
The Tether CEO’s reply followed a podcast interview in which Garlinghouse asserted a “100%” probability of another crypto-related black swan event. The CEO of Ripple stated that the United States government is targeting Tether without providing further details regarding his assessment. Nonetheless, Garlinghouse recognized Tether’s contribution to the cryptocurrency market.
Many in the cryptocurrency community interpreted the remarks of the CEO of Ripple as a foreboding indication of forthcoming regulatory action in the United States. Others argued that it was merely a competitive maneuver, given that Ripple is about to introduce a stablecoin.
Cointelegraph contacted Tether for comment; however, a response has yet to be received.
