Mysterious Tether CEO Steps Down, Tech Chief Takes Over

Mysterious Tether CEO Steps Down, Tech Chief Takes Over

  • Tether, a leading stablecoin company, has appointed Caolo Ardoino as CEO, replacing the secretive Jean-Louis van der Velde.
  • Ardoino, who also serves as Tether’s CTO, is known for his public presence and commitment to conducting a full audit of the company.
  • Tether, with over $80 billion in USDT tokens in circulation, faces increased regulatory scrutiny and is adapting to forthcoming crypto regulations in the European Union.

Oct.13 : In a surprising turn of events, Caolo Ardoino, the Chief Technology Officer of Tether, has been appointed as the CEO of the stablecoin company. This announcement comes as a significant change in leadership, as Ardoino will be taking over from Jean-Louis van der Velde, a rather secretive figure in the crypto industry, who has been at the helm of the company for several years.

According to a press release issued on Friday, Tether revealed that Ardoino will officially assume the role of CEO in December 2023, succeeding van der Velde. However, van der Velde will still maintain his position as CEO at Bitfinex, a closely affiliated cryptocurrency exchange operated by the same Hong Kong-based parent company, Ifinex. He will also take on a new advisory role at Tether.

Ardoino’s new responsibilities as CEO will not affect his role as Tether’s Chief Technology Officer. He will also continue his position as the Chief Strategy Officer of Holepunch, a peer-to-peer communications network launched by Tether, Bitfinex, and the infrastructure platform Hypercore.

Ardoino’s journey in the crypto space began when he joined Bitfinex in 2014, and he later assumed the role of Chief Technology Officer at Tether in 2017.

Tether is a major player in the stablecoin market, with its USDT token being the largest stablecoin by market value, boasting over $80 billion worth of tokens currently in circulation. Stablecoins play a crucial role in the cryptocurrency market, facilitating seamless trading of digital assets worldwide.

In a statement, the departing CEO van der Velde expressed confidence in Ardoino’s leadership, stating that he believes Tether is well-positioned for continued growth, with a focus on emerging markets and transformative technology.

The departure of van der Velde, who has been a very private figure, coincides with increased scrutiny of Tether’s transparency. Many observers have criticized the lack of transparency from the former CEO as a potential issue for the company.

Ardoino, on the other hand, has been a more public figure representing Tether, often giving interviews and participating in discussions to address concerns about Tether and its USDT token. He has also committed to eventually conducting a full audit of the company, explaining that the lack of regulation in the crypto industry has made it challenging to engage the services of major auditing firms.

The European Union’s forthcoming Markets in Crypto Assets (MiCA) regulation is expected to bring more transparency to the stablecoin industry, but it won’t fully come into effect until December 2024.

Tether faced a major controversy last year when a rival stablecoin, TerraUSD (UST), collapsed, leading to concerns about the backing of stablecoins like Tether’s USDT. Tether has maintained that its coin is always backed by assets, including government bonds, cryptocurrencies like Bitcoin, and even gold.

Tether’s reserves have continued to grow, reaching more than $86 billion in a three-month period from April to June. The company reported a profit of over $1 billion, a 30% increase quarter-over-quarter. Tether’s investments include U.S. Treasury bills, yielding approximately 4.6%, as well as income from fees and loans to other institutions.

In 2021, Tether settled with the New York Attorney General’s office for $18 million, addressing allegations of moving funds to cover up losses. As part of the settlement, Tether committed to providing quarterly reports detailing its reserves.

Tether remains under close regulatory scrutiny, with reports of the U.S. Department of Justice investigating Tether executives for bank fraud allegations during the early days of the company.

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John Smith

John Smith is a distinguished journalist, holding a Master's in Journalism from the renowned Columbia University. With a knack for uncovering the most captivating stories, John is the go-to expert for all things related to politics and current affairs. His insightful analysis and commitment to unbiased reporting set him apart in the world of journalism. John's writing ensures you're always in the know about the latest happenings in the USA.

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