Tether Holdings Ltd., the issuer of the USDT token, has reported a remarkable nine-month profit of $7.7 billion for 2024, with Q3 profits alone reaching $2.5 billion. This financial performance comes as Tether faces potential regulatory scrutiny from U.S. prosecutors in Manhattan, who are investigating allegations of the company funding illegal activities and possibly violating money laundering and sanctions laws. Despite these challenges, Tether's total assets have surged to $134.4 billion, and its group equity has hit $14.2 billion. The circulation of USDT has grown to almost $120 billion, marking a 30% increase year-to-date. [875002e7][1b972046]
Tether's CEO, Paolo Ardoino, emphasized the company's commitment to transparency and liquidity, noting that Tether holds $102.5 billion in U.S. Treasuries, ranking among the top 18 holders globally. The company also boasts an excess reserve buffer of over $6 billion, which is crucial as it navigates the ongoing investigations. Ardoino previously expressed concerns that the U.S. government could 'kill us' easily, reflecting the gravity of the regulatory environment surrounding the cryptocurrency sector. [875002e7][1b972046]
In addition to Tether's financial updates, the scrutiny from the U.S. Department of Justice continues, focusing on allegations related to sanctions evasion. Tether has faced legal challenges in the past, including fines from the Commodity Futures Trading Commission (CFTC) and the New York Attorney General. Experts like Hilary Allen have warned that Tether is 'too big to fail,' indicating that its potential collapse could have significant implications for the broader cryptocurrency market. [1b972046][bcf7dd0b]
Moreover, Tether's investments arm has reported $7.7 billion in proprietary investments and holds 7,100 Bitcoin, further solidifying its position in the market. Meanwhile, Circle, another major player in the stablecoin market, has faced accusations from the Campaign for Accountability (CfA) regarding money laundering for terrorist organizations, which Circle has vehemently denied. This highlights the increasing scrutiny faced by stablecoin issuers as regulatory bodies ramp up their oversight. [43d3b636]