Despite insisting on abiding by the law and cooperating with authorities, Tether CEO is concerned that the US government could wipe out the stablecoin company at any time.

In an interview with CoinDesk, Tether CEO Paolo Ardoino spoke candidly about the company's relationship with US regulators.

"If the U.S. government wanted to kill us, they can press a button," says @Tether_to's CEO, @paoloardoino.

But $USDT's issuer is comfortable holding T-bills at a U.S. institution because "we respect" sanctions.

Interview by @sndr_krisztianhttps://t.co/7qS6qxTw02

— CoinDesk (@CoinDesk) October 28, 2024

Ardoino admitted.

"If the US wants to, they can wipe us out at any time. We are not foolish enough to go against the US."

However, Ardoino asserted that Tether always tries its best to comply with regulations and cooperate closely with law enforcement agencies. He said:

"We may not be very good at the media aspect, but Tether is actively cooperating with the FBI and the Secret Service to ensure compliance with the law. We even received a thank you letter from the US Department of Justice for these efforts. Tether is committed to doing everything possible to be transparent and cooperate with the authorities."

Why Tether should fear the US government

A key factor leading to the above statement is that the majority of Tether's reserves include $80 billion in US Treasury bills (T-bills) that are being deposited at Cantor Fitzgerald, a leading financial institution on Wall Street.

Notably, the close relationship between Cantor Fitzgerald CEO Howard Lutnick and the US government – ​​especially his role in Donald Trump's campaign – has raised concerns that the US government could influence Tether through Cantor Fitzgerald's influence.

However, when asked about Tether's relationship with Cantor Fitzgerald and the political role of CEO Howard Lutnick, Ardoino said that this was a necessary step for Tether to transform from a small-scale stablecoin issuer to a "big guy" that always needed a reputable and large-scale management unit like Cantor Fitzgerald.

Ardoino acknowledged that Tether cannot avoid US government oversight: "No matter where you keep your T-bills, they are ultimately under the control of the Fed." However, he expressed "comfort" in working with Cantor Fitzgerald because the company always strictly complies with the regulations of OFAC, the US sanctions enforcement agency.

The Impact of the US Presidential Election on Tether

When talking about the upcoming US presidential election results, Ardoino expressed optimism that whoever wins will realize the potential of cryptocurrencies. He believes that Tether will benefit from the completion of the legal framework for cryptocurrencies in the US, especially since the company is playing an important role in buying up the large amount of US Treasury bills that China is selling.

He emphasized that Tether being in the top 18 holders of US Treasury bills in the world to maintain the position of the USD is a plus for both political parties.

Is Tether a victim of attention?

When asked about the role of USDT in illegal financial activities, Ardoino said that it is just a "drop in the ocean" compared to the USD. He argued:

"Nobody is perfect, but look at the huge fines that banks have paid for facilitating money laundering. In the past month alone, TD Bank agreed to pay more than $3 billion in fines for failing to monitor drug cartels for money laundering."

Ardoino stressed that Tether has proactively frozen illicit funds and blacklisted crypto wallets linked to illegal activity, and has cooperated with 180 government agencies worldwide to prevent crime. He stated:

"Our message is clear: Only stupid criminals would use USDT or crypto in general to launder money."

Ardoino's comments came shortly before the Wall Street Journal published an article alleging that Tether is under criminal investigation by the US Department of Justice for suspected violations of sanctions and anti-money laundering laws.

Tether immediately denied the information, calling the WSJ article "highly irresponsible." Ardoino also confirmed on X that he "has seen no indication that Tether is under investigation."