Tether CEO Paolo Ardoino has responded sharply to Ripple CEO Brad Garlinghouse's recent insinuations that the U.S. government is aggressively targeting Tether, the world's leading stablecoin issuer.
Ardoino rebutted Garlinghouse's remarks, labeling them hypocritical given Ripple's own legal entanglements with the U.S. Securities and Exchange Commission (SEC) and its intentions to introduce a stablecoin to rival Tether's market dominance. Ripple's plans to enter the stablecoin arena in 2024 coincide with the company's ongoing litigation against the SEC.
Highlighting Tether's market dominance and global user base, Ardoino emphasized the stablecoin's track record of providing assistance to bank users in developing economies while asserting its strong price stability, ample liquidity reserves, top-tier custodians, and rigorous compliance measures.
Ardoino underscored Tether's compliance efforts by detailing its collaboration with 124 law enforcement agencies across 40 countries, resulting in the freezing of over $1.3 billion in assets linked to fraud, hacking, and money laundering. Notably, Tether cooperated with U.S. law enforcement to freeze more than $639 million. Additionally, Ardoino disclosed Tether's voluntary compliance with 198 wallet-blocking requests in the past year, with 90 originating from U.S. law enforcement agencies. Over the last three years, Tether has fulfilled 339 such requests, with 158 originating from U.S. authorities.
Taking a dig at competing stablecoin issuers, Ardoino highlighted Tether's proactive approach to cooperation with law enforcement, contrasting it with other issuers who only comply with judicial orders, potentially allowing malicious actors ample time to maneuver funds.
Ardoino's response follows Garlinghouse's assertion in a podcast interview that another cryptocurrency-related black swan event is "100% possible," with Garlinghouse suggesting that the U.S. government is actively pursuing Tether. While Garlinghouse acknowledged Tether's significant role in the cryptocurrency market, his comments raised concerns within the crypto community regarding potential regulatory actions. Some observers interpreted Garlinghouse's remarks as a strategic maneuver in light of Ripple's impending stablecoin launch.
