bargainmoose / Flickr

Tether Ltd., the company behind the stablecoin UDST, announced today that it has appointed Leonardo Real, the former AML quality control manager at the Bank of Montreal, as Chief Compliance Officer (CCO).

According to the announcement, Leonardo Real is a seasoned financial expert with experience managing AML risk in capital markets, in addition to wealth management and commercial banking sectors. Real also organized a blockchain, cryptocurrency and AML event held in Toronto in August 2016 that addressed the roles of companies regulators, bankers and law enforcement agencies in the blockchain industry.

In a statement accompanying the announcement, Jean-Louis van der Velde, CEO of Tether, expressed his confidence in Real as a key growth factor for the company as it continues its efforts to improve transparency.

All of us at Tether have every confidence in his ability to oversee and manage all relevant compliance issues as we continue to move forward and grow.

Tether has been under fire over the last year as allegations of fraud and improper accounting have plagued the project that claims to have $2.54 billion in assets, as of June 1.

In an effort to combat these allegations, Tether recently announced that it had engaged Freeh, Sporkin & Sullivan LLP (FSS) earlier this year to review bank account documentation and to perform randomized inspections on the USD currency reserves.

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However, the drama continued after independent researchers published a number of controversial studies alleging various improper activities directly and indirectly tied to the stablecoin.

In early June, a¬†paper¬†was published¬†by a professor at the University of Texas titled “Is Bitcoin Really Un-Tethered?” claims that fraudulent transactions of¬†Tether were responsible for approximately 50% of the meteoric rise in Bitcoin and 64% of other top cryptocurrencies.

More recently, Bloomberg released a report alleging potential Tether (UDST) price manipulation on Kraken, one of the world’s most popular cryptocurrency exchanges.

However, Kraken¬†quickly responded with its own post titled, “On Tether: Journalists Defy Logic, Raising Red Flags,” Kraken delivers a point-by-point rebuttal of the allegations in an effort to dispell the accusations as a simple lack of understanding of how markets actually work.

While the Tether story is far from played out, the addition of an industry expert on compliance should definitely be seen as a step in the right direction for both regulators and investors.

More: Tether Appoints Former AML Quality Control Manager at Bank of Montreal as Chief Compliance Officer
Related:¬†Tether‚Äôs ‚ÄėTransparency Update‚Äô Claims USDT Is Fully Backed by USD Reserves
Photo: bargainmoose / Flickr

Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.



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