Tether, the company issuing the stablecoin USDT, revealed very good results for its 3rd quarter of 2024. However, the company is in the sights of many regulators, and potentially that of the United States Department of Justice.
Tether (USDT) revealed very good results for its 3rd quarter 2024
Tether, the issuer of the USDT stablecoin, revealed its results for the 3rd quarter of 2024. The company announced a net profit of 2.5 billion dollars as of September 30, bringing its total annual profit to $7.7 billion.
A little more than half of the net profit of the 3rd quarter, or 1.3 billion dollars, comes from the return on US Treasury assets while the rest is due to the gains made through to a better appreciation of gold holdings since the company holds a certain quantity of gold.
🔎 Everything you need to know about Tether (USDT), the most capitalized stablecoin on the cryptocurrency market
During the previous quarter, Tether managed to exceed $120 billion in capitalization. This represents a 30% increase in USDT emissions for the year 2024 with a total of 27.8 billion new tokens issued.
According to its financial report, Tether explains having declared $125.5 billion in assets in reserve versus $119.4 billion in liabilities by September 30. At the same time, excess reserves supporting stablecoins issued by Tether reached more than 6 billion dollars.
Paolo Ardoino, CEO of Tether, spoke about these results which consolidate the company's place as a leader in stablecoins :
Tether's performance in the third quarter of 2024 reflects of our unwavering commitment to transparency, liquidity and responsible risk management. Reaching the $120 billion capitalization milestone for USDT and declaring an exposure of $102.5 billion to the US Treasury highlights the company's unrivaled financial strength. By increasing our buffer reserve to over $6 billion and maintaining focus on strategic investments, Tether once again sets the standard for stability in the financial industry.
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Is the company still under investigation by the United States Department of Justice?
During October, Paolo Ardoino had already committed to ensuring that Tether would redouble its efforts in terms of communication and transparency. Cornered by regulators around the world, the company could even be at the center of an investigation by the United States Department of Justice.
Quickly, the CEO of Tether reacted, affirming that there was no evidence that the company was under investigation by the US Department of Justice. “As we told the Wall Street Journal, there is no indication that Tether is under investigation. The Wall Street Journal is just rehashing old rumors. Period,” specifies Paolo Ardoino.
👉 Also read – Which stablecoin to choose? Evaluation of the main market options
According to information from Wall Street Journalthe investigation would target the possible use of the stablecoin USDT by third parties for carrying out illicit activities : terrorism, money laundering, etc. For several years, Tether is monitored by the Office of Foreign Assets Control (OFAC)an organization under the auspices of the US Treasury Department.
If the investigation proves that the company was involved in these illicit activities, it could end up on the OFAC blacklist, prohibiting it from operating in the American market.
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Source: Press release
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Surprised by the rise of crypto-assets at the end of the 2010s, I began to closely follow this sector which fascinates me to the greatest extent. When I'm not in football stadiums, rugby stadiums or handball halls, I work on writing relevant articles around cryptocurrencies and more broadly, Web3.
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