CEO of Cantor Fitzgerald Affirms Tether’s Financial Integrity
The CEO of Cantor Fitzgerald LP, Howard Lutnick, has confirmed the financial integrity of Tether Holdings. Lutnick, whose firm acts as Tether’s custodian, has verified that Tether’s declared assets align with their financial statements. As of June, Tether reported a substantial asset base of approximately $86 billion to support its USDT stablecoin circulation of $83 billion.
Cantor Fitzgerald’s Role in Managing Tether’s Assets
Cantor Fitzgerald plays a significant role in managing many of Tether’s assets. This confirmation is crucial given the skepticism surrounding Tether’s claim that its stablecoin is fully backed by dollars on a one-to-one basis.
Lutnick Dispels Doubts About Tether’s Funds
In an interview with Bloomberg Television, Lutnick emphasized that he and his firm have extensively reviewed Tether’s financials. He asserted that Tether has the money it claims to have, dispelling persistent doubts about the availability of funds.
Tether’s Regulatory Issues and Commitment to Compliance
Tether faced regulatory scrutiny in 2021 and incurred a penalty exceeding $40 million for misleading statements about its financial reserves. Since then, Tether has been releasing attestations from a third-party accounting firm to provide insights into its reserves without conducting a full audit.
UN Report Flags USDT for Money Laundering
A report by the United Nations Office on Drugs and Crime highlighted USDT as a frequently used instrument for money laundering and illicit transactions. In response, Tether reaffirmed its commitment to combating the misuse of cryptocurrencies for criminal activities. The company emphasized the traceability of blockchain transactions as a deterrent to illegal use.
Tether’s Cooperation with US Regulators
Tether has demonstrated its commitment to assisting US regulators in identifying and seizing crypto assets tied to criminal activities. In November, the stablecoin issuer froze $225 million USDT linked to a trafficking syndicate under investigation by the DOJ.
Hot Take: Tether’s Financial Integrity Confirmed by Cantor Fitzgerald CEO
Howard Lutnick, CEO of Cantor Fitzgerald LP, has verified Tether Holdings’ financial integrity. Cantor Fitzgerald, as Tether’s custodian, has reviewed Tether’s financials and confirmed that their declared assets align with their financial statements. This confirmation is significant given the doubts surrounding Tether’s claim of full dollar backing for its stablecoin. Tether, as the largest stablecoin with a circulation of nearly $95 billion, has faced regulatory scrutiny and allegations of being used for money laundering. However, Tether has reiterated its commitment to compliance and cooperation with regulators in combating illicit activities. With ongoing efforts to provide transparency and cooperate with authorities, Tether aims to address concerns and maintain trust in its operations.
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