In a recent podcast appearance, Brad Garlinghouse, the CEO of Ripple, raised suspicions by predicting a potential “Black Swan event” that could involve Tether’s primary stablecoin, USDT.
Reports from the Wall Street Journal indicated that the company was experiencing troublesome developments, which led to the prediction. Nevertheless, the CEO of Tether promptly denied these allegations, stating that they were “unambiguously false.”
Garlinghouse expressed his conviction that the U.S. government would intensify its examination of Tether during his May 2024 interview with Chris Vasquez on the “World Class” podcast. This prediction coincided with Ripple’s announcement of its new stablecoin, the Ripple U.S. Dollar (RLUSD).
He emphasized that Black Swan events can emerge suddenly and unexpectedly, citing past events such as the FTX collapse and the legal troubles of Binance’s CEO, Changpeng Zhao, as examples of unpredictable industry shifts.
CEO Paolo Ardoino responded to the Wall Street Journal’s report on a potential criminal investigation into Tether by asserting that the company consistently works with law enforcement to prevent the misuse of USDT by illicit actors.
He maintained that Tether is not currently under investigation and characterized the article’s statements as outrageously inaccurate. Despite the momentary decline in Bitcoin’s price to $66,000 following the initial publication of the WSJ report, the leading cryptocurrency promptly rebounded to top $67,000.
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