Tether CEO implies Circle director misled Congress in 'desperation' attack on USDT

cyptouser5 months agoCryptocurrencies News104

Stablecoin issuers Tether told CyptoRanking in a Feb. 16 statement that it is actively averting the misuse of stablecoin technology by working with global law enforcement agencies.

The remarks followed comments by Caroline Hill, Senior Director of Global Policy and Regulatory Strategy at Circle, during a House Financial Services Committee hearing titled ‘Crypto Crime in Context Part ll: Examining Approaches to Combat Illicit Activity,’ urging the authorities to scrutinize Tether’s alleged involvement in terror financing.

Hill seemingly attacked stablecoin competitor Tether directly in response to Congressman Wiley Nickel of North Carolina’s questions on Tether, stating,

“I hope they [the Treasury Department] are looking at this seriously, given Tether’s reputation, as well as the data we’ve seen, that they are contributing to terror financing,”

Speaking on this, Tether CEO Paolo Ardoino said:

“Misleading Congress is a shocking act of desperation and those who do so should be ashamed of themselves. Spouting lies and running in Circles never gets you anywhere.”

Ardoino continued that his company has done more than anyone else to combat illicit crypto activities and remains fully committed to continuing the fight.

US regulators can ‘exert control’ over Tether, JPMorgan says

JPMorgan analysts said American regulatory bodies, particularly the Office of Foreign Assets Control (OFAC), ‘exert control’ over Tether’s offshore usage.

The analysts cited OFAC’s sanction on Tornado Cash, a crypto-mixer operating on the Ethereum blockchain, as an example of such controls. In 2022, OFAC sanctioned the protocol for facilitating money laundering, forcing Tether to freeze assets in the wallets subject to the sanctions.

Tether told CyptoRanking that it “follows Treasury OFAC sanctions” and collaborates with law enforcement agencies across several jurisdictions.

“We follow Treasury OFAC SDN sanctions and work with law enforcement agencies in 19 jurisdictions globally, including working directly with the US DOJ and US Secret Service,” Ardoino said.

Analysts further predicted that the impending stablecoin regulations would reduce Tether’s attractiveness due to its perceived lack of transparency and compliance with KYC/AML standards. This scrutiny could be extended to DeFi sector, where the USDT serves as collateral and liquidity for several protocols.

In addition, the analysts argued that Tether’s current disclosures are insufficient to ease concerns, highlighting S&P Global’s weak rating regarding its ability to maintain its peg to the US dollar.

Last month, the Wall Street giant criticized Tether’s dominance in the crypto sector, drawing the ire of Ardoino, who denounced the bank’s perceived double standards.

Mentioned in this article
Ethereum Tether USD Coin Tether Limited Circle JPMorgan Paolo Ardoino
The content on this website comes from the Internet. Due to the inconvenience of proofreading the authenticity and accuracy of the copyright or content of some content, it may be temporarily impossible to confirm the authenticity and accuracy of the copyright or content. For copyright issues or other issues caused by this, please Call or email this site. It will be deleted or changed immediately after verification.

related articles

BIS launches 'Project Atlas’ to monitor and collect DeFi data

The Bank for International Settlements (BIS), in partnership with central banks within the Eurosyste...

Binance co-founder denies responsibility for $1M trading loss in hacked account

Binance co-founder denies responsibility for $1M trading loss in hacked account

55966e89˃Yi He, co-founder of crypto exchange Binance, has dismissed claims that a platform security...

Tap Protocol secures $4.2M for Bitcoin OrdFi innovation and expansion through Ordinals

Tap Protocol secures $4.2M for Bitcoin OrdFi innovation and expansion through Ordinals

Tap Protocol has completed a $4.2 million funding round led by Sora Ventures to enhance its role in...

Crypto regulation redefined: How MiCA affects your company

The following is a guest post by Mark Gofaizen, Senior Partner at Gofaizen & Sherle. As the MiCA...

TradFi starting to relent on Bitcoin ETF access amid intense demand from clients

TradFi institutions are starting to buckle under the pressure of demand from clients interested in B...

4 reasons why Bitcoin was a buy below $70K

4 reasons why Bitcoin was a buy below $70K

55966e89˃Bitcoin (BTC) rose above the $70,000 mark for the first time in six weeks. Here’s why you s...