Tether CEO Ardoino Clashes with Ripple’s Garlinghouse Over USDT Safety Concerns and Regulatory Scrutiny

Tether CEO Ardoino Clashes with Ripple’s Garlinghouse Over USDT Safety Concerns and Regulatory Scrutiny

Ardoino took aim at Ripple’s Garlinghouse for what he perceived as a deliberate campaign of spreading Fear, Uncertainty, and Doubt (FUD) while commending Tether’s endeavors to ensure the safety and compliance of USDT.

The CEO of Tether, a prominent stablecoin issuer, has strongly criticized Brad Garlinghouse, the head of Ripple Labs, accusing him of sowing seeds of doubt regarding USDT. Ardoino took to X (formerly Twitter) to publish a comprehensive post ridiculing Ripple’s regulatory entanglements and then delving into the realm of Tether, USDT, and its significance within the industry.

Garlinghouse of Ripple Speculates Government’s Aim at Tether

In a recent interview, Garlinghouse voiced concerns that Tether’s USDT could be the next focal point of regulatory scrutiny by the US government, implying that Tether might bear the brunt of the government’s crackdown on stablecoins. Garlinghouse remarked:

“The US Government seems poised to target Tether. That’s my assessment. I perceive Tether as a crucial component of the ecosystem, and I’m uncertain about the ramifications it might have on the wider ecosystem.”

Garlinghouse’s remarks were possibly triggered by recent allegations suggesting that terrorist organizations and sanctioned nations exploit the stablecoin to evade US-imposed financial restrictions. A report released by the United Nations Office on Drugs and Crime Unit in January highlighted USDT‘s growing use in various illicit activities across Asia, including money laundering schemes.

Furthermore, last month, US Treasury Deputy Secretary Adewale Adeyemi asserted that Russia was resorting to alternative payment mechanisms like USDT to bypass US economic sanctions. In a written testimony to the Senate Banking, Housing, and Urban Affairs Committee, Adeyemi pointed out Russia’s utilization of such methods to “fund its military efforts” and recommended secondary sanctions on foreign crypto providers aiding illicit finance.

Tether’s Ardoino Fires Back at Garlinghouse

Ardoino initiated his response by labeling Garlinghouse as “misinformed” before offering an update on USDT.

Speculating that Garlinghouse might have a vested interest in instilling fear concerning USDT due to Ripple’s intentions to launch its own dollar-backed stablecoin, Ardoino underscored the positive impact of the Tether USDT ecosystem. He emphasized USDT’s status as the world’s most utilized stablecoin, serving millions in developing nations and emerging markets, often neglected by traditional banking systems. Many in these communities rely on USDT as their primary financial tool.

Ardoino proceeded to tout the safety and reliability of the Tether ecosystem, highlighting USDT’s compliance with essential standards expected of widely adopted stablecoins. He mentioned Tether’s top-tier custodial arrangements, ample reserves, and price stability.

Regarding compliance, the CEO spotlighted Tether’s collaborative efforts with law enforcement agencies worldwide to combat illicit activities. Ardoino disclosed that Tether has collaborated with 124 law enforcement agencies across over 40 countries, thwarting over $1.3 billion related to money laundering, scams, and cyberattacks. Additionally, Tether has honored 198 law enforcement requests (90 from the US) to freeze wallets in the past year and 339 (158 from the US) over the last three years. Notably, Tether has assisted the US in blocking over $639 million worth of USDT, facilitated by a skilled team employing various monitoring tools across Tether’s platforms and secondary markets, including blockchains and exchanges.