Tether’s CEO acknowledged the challenges inherent in reliably verifying the company’s reserves and assured that they are guaranteed to exceed 100%. This means that the USDT stablecoin is not in danger.
Paolo Ardoino gave an interview to the Brazilian publication Portal do Bitcoin, where he complained that his company periodically faces accusations from regulators of insufficient transparency, objective assessment and audit of reserves. Sometimes this leads to lawsuits, for example by US authorities in 2021.
Paolo Ardoino did not dispute the existence of problems and the legality of the requirements of government regulators. However, he noted that the main problems that caused complaints from supervisory authorities are in the past. Tether has learned from its mistakes, with the USDT stablecoin never losing its peg to its underlying asset, the US dollar.
The day before, Tether announced its voluntary cooperation with the Office of Foreign Assets Control (OFAC). It is reported that the company will block wallets associated with people and organizations sanctioned by OFAC in its smart contract.
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