Tether's Influence on UK Politics and Its Ownership Dynamics

Tether's Political Influence in the UK

Tether, a prominent player in the cryptocurrency market, has significant ties to UK politics. One of its major shareholders is a well-known donor to influential UK politicians, including Nigel Farage and Boris Johnson. Following substantial donations, the UK government announced plans to recognize stablecoins as legitimate payment forms. This move aligns with the government's strategy to position the UK as a leading hub for crypto-asset technology.

Ownership Structure of Tether

In 2018, investigations revealed that Tether's ownership was concentrated among a small group of individuals. Giancarlo Devasini, a former plastic surgeon and now a key figure in the crypto world, held 43% of Tether's shares. Tether Holdings Ltd., responsible for the $68 billion Tether stablecoin, is notably private about its ownership details. However, documents show that four individuals owned 86% of the company at that time.

Key Shareholders and Their Backgrounds

Giancarlo Devasini, alongside Brock Pierce, co-founded Tether in 2014. After Pierce sold his shares and left, Devasini continued as a major shareholder. Other significant stakeholders include Jean-Louis van der Velde and Stuart Hoegner, both holding executive positions at Tether and Bitfinex. These executives each own 15% of the company.

Political Contributions and Market Influence

British-Thai businessman Christopher Harborne, known for substantial political donations, owns a significant portion of Tether shares. His financial contributions include a record-setting donation to Boris Johnson and substantial support for Nigel Farage’s Brexit Party. These actions coincide with the UK’s evolving stance on crypto regulation.

Regulatory Scrutiny and Settlements

Tether has faced regulatory investigations, notably by the New York Attorney General’s Office and the Commodity Futures Trading Commission. The company settled with these agencies for $61 million, agreeing to disclose its reserves periodically. This scrutiny highlights the complexities and challenges within the crypto industry's regulatory landscape.