Ripple CEO Warned About Tether “Black Swan Event” in 2024, Is It Happening?

As a seasoned crypto investor with a keen eye for market trends and regulatory developments, I find myself intrigued by the ongoing saga between Ripple and Tether. The predictions made by Brad Garlinghouse back in May 2024, about a potential government crackdown on Tether, seem to be gaining traction, albeit with Tether’s CEO vehemently denying any such investigation.


According to an article by U.Today, in May 2024, Ripple‘s CEO Brad Garlinghouse expressed his belief that there could be an unexpected incident or crisis (a “Black Swan event”) affecting Tether and their primary product, USDT, during a podcast discussion about cryptocurrency and blockchain technology.

A recent Wall Street Journal article suggests that the pessimistic prediction could be materializing. However, it’s worth mentioning that the CEO of Tether has refuted this WSJ report, categorically stating that the details provided were “unquestionably untrue.

Garlinghouse in May 2024: “The US government is going after Tether”

During a conversation with Chris Vasquez on his “World Class” podcast in early May, Brad Garlinghouse expressed his belief that it was imminent for the U.S. government to take action against Tether. Notably, this discussion took place shortly before Ripple unveiled plans for its upcoming product – the Ripple US Dollar stablecoin (RLUSD).

Previously, Garlinghouse predicted that a significant, unforeseen event might occur in the cryptocurrency world. He referred to this as a “Black Swan” event. He mentioned the potential downfall of the FTX exchange and the arrest of its founder Sam Bankman-Fried as an example of such an event’s possible start. Additionally, he brought up the situation involving Binance and its renowned CEO Changpeng Zhao as another potential indicator.

For a period spanning from May through October, CZ served a four-month sentence in prison, but was freed at the tail end of September. Additionally, the CEO of Binance, Richard Teng, has imposed a lifetime ban on him from managing the platform.

As a researcher, I find myself in agreement with Garlinghouse’s assertion that Black Swan events are inherently unpredictable, arising unexpectedly from the complexities of the world we inhabit. Yet, I share his apprehensions regarding the potential future implications for Tether and anticipate that regulatory bodies may take a keen interest in it.

Tether CEO denies government’s crackdown

According to U.Today’s report, Tether CEO Paolo Ardoino responded to news of a potential criminal investigation by the US government. Ardoino emphasized that Tether routinely collaborates with law enforcement agencies to stop illegal activities involving USDt, such as those conducted by rogue countries, terrorists, and criminals.

He made it clear that they would be aware if an investigation was taking place, and he firmly denied the content of the article, stating it was completely untrue. The Wall Street Journal’s article caused Bitcoin to drop to $66,000 initially, but it eventually regained its footing and reclaimed the $67,000 mark.

At Tether, we frequently interact with law enforcement agents worldwide to ensure that unauthorized entities such as rogue nations, terrorists, and criminals do not manipulate USDt. Rest assured, should any investigation arise concerning us, we would be informed. Therefore, we can affirmatively state that the accusations in… are unfounded.

— Paolo Ardoino 🤖🍐 (@paoloardoino) October 25, 2024

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2024-10-26 15:04