Samson Mow: Ripple’s ‘Cheap Shots’ at Tether

Ripple CEO Brad Garlinghouse has found himself under heavy scrutiny after making comments about Tether during a podcast on May 10. In a discussion about future financial risks, Garlinghouse said, “The U.S. government is going after Tether, that is clear to me.” These remarks were not taken lightly by the crypto community. Tether CEO Paolo Ardoino called Garlinghouse “an uninformed CEO,” while Samson Mow, CEO of hyperbitcoinization company Jan3, suggested Garlinghouse should leave the critiques to XRP enthusiasts.

Mow provided further insights when approached by about Garlinghouse’s motivations. According to Mow, Garlinghouse is likely spreading fear, uncertainty, and doubt (FUD) about Tether. Mow pointed out that this is a typical tactic used by companies trying to compete with Tether over the past decade. Despite such efforts, Tether continues to thrive and has diversified into sectors like energy and artificial intelligence.

Mow attributes Garlinghouse’s comments to competitive motivations related to Ripple’s ambitions. He asserts that Garlinghouse sees both Bitcoin and Tether as threats to Ripple’s plans. Reflecting on previous times when Ripple targeted Bitcoin, Mow said, “Garlinghouse is motivated to attack both Bitcoin and Tether because they both compete with what he wants Ripple/XRP to be.” Mow even recalled earlier instances where Ripple’s bot armies targeted Bitcoin when XRP was promoted as a form of digital money. Now that Ripple aims to issue a stablecoin, the company appears to be shifting its focus.

In Mow’s harsh final evaluation, he predicted that Ripple’s efforts to compete would likely fail. “XRP failed to compete with Bitcoin, and their stablecoin will fail too,” he stated, casting doubt on Ripple’s chances of success in the stablecoin market.

Following the backlash, Garlinghouse addressed Ardoino on social media on May 13. Clarifying his initial remarks, Garlinghouse stated, “I wasn’t attacking Tether; the next words out of my mouth during the podcast were that I view Tether as a hugely important part of the ecosystem.” He argued that his main point was about the U.S. government’s desire for greater control over USD-backed stablecoins, making Tether a key target due to its prominent position in the market.

Garlinghouse’s response, Did little to mitigate the concerns. His clarification reiterated, rather than reversed, his initial claims. He maintained that Tether would remain in the crosshairs of U.S. regulatory authorities. reached out to Ripple for further comments, but a spokesperson noted that Garlinghouse’s May 13 post represented the final stance on the issue for the time being.

The story of Tether is a complex and controversial one, embroiled in allegations ranging from insufficient audits and lack of proper backing by real-world assets to market manipulation claims. Critics have also accused Tether of operating without adequate regulation and creating a risk for future financial instability.

Among the most vocal critics of Tether are Amy Castor and David Gerard. In a May 14 article, they suggested a “day of reckoning” for Tether could be imminent, similar to penalties faced by Binance for providing services to sanctioned countries. They anticipated potential large fines and possible jail time for Tether principals due to alleged sanctions evasion.

Interestingly, Tether has been openly collaborating with regulatory and law enforcement agencies. In 2023, Ardoino disclosed Tether’s efforts to engage with the United States Secret Service and its plans to include the Federal Bureau of Investigation. Thus, while Garlinghouse suggests the U.S. is targeting Tether, the company has been proactive in its regulatory engagements.

In April, Ripple unveiled plans to release its own stablecoin, named RLUSD. Ripple’s Chief Technology Officer David Schwartz claimed the market, estimated to be worth around $150 billion, had enough room for more competitors. Ripple doesn’t seem to have intentions to make friends in the competitive stablecoin market. Garlinghouse’s comments sparked doubt about Tether, regardless of his claims of innocent intentions.

Mow finds Garlinghouse’s comments especially ironic, noting that Ripple itself is under significant scrutiny. He remarked, “It’s funny that Brad Garlinghouse is making such claims as if he would have special insight. The fact is the U.S. government is actually ‘going after Ripple’ for $2.5 billion in fines for selling unregistered securities (XRP).” This highlights a broader context in which Ripple and its executives are navigating their own legal challenges even as they throw barbs at competitors.