Tether CEO Reveals Open-Source Local Password Manager—Urges “Ditch the Cloud” After $300M Data Leak Threat

Stablecoin issuer Tether’s CEO, Paolo Ardoino announced that plan to launch a new password manager that stores all user data locally, with no reliance on cloud infrastructure.

The announcement comes just after researchers uncovered a major data breach exposing over 16 billion login credentials.

Tether Enters Privacy Tech Race With PearPass, Aiming to Secure Crypto Users Password Post-Leak

Tether CEO Paolo Ardoino shared the news on X, revealing that the company is preparing to launch PearPass, a fully open-source password manager built to run without servers or remote storage.

“The cloud has failed us. Again,” Ardoino wrote. “16 billion passwords just leaked. It’s time to ditch the cloud. That’s why we’ve been building PearPass.”

The data breach, uncovered by the Cybernews research team, includes stolen credentials from major online platforms such as Apple, Google, Facebook, Telegram, and GitHub.

Many of the datasets were compiled using info-stealer malware and other techniques, some containing over 3 billion entries alone.

Cybernews warned that the breach poses a severe threat to digital identity and crypto asset security, calling it “a blueprint for mass exploitation.”

The structure of the data, including recent login tokens, cookies, and credentials, makes it especially dangerous for crypto users.

In response, Ardoino said Tether had been quietly building PearPass to help address the risks posed by centralized storage. Unlike most popular password managers, PearPass will not rely on the cloud or external servers.

“It’s a fully local, open-source password manager,” Ardoino wrote. “No cloud. No servers. No leaks. Ever. Just you — and your keys, stored securely on your devices.”

The tool is designed to eliminate the single point of failure that comes with remote servers. All password data and encryption keys will be kept on users’ personal devices, reducing the risk of third-party exposure or surveillance.

While the full extent of the recent leak is still being analyzed, researchers confirmed that much of the exposed data is fresh and likely harvested in recent months.

Several sets were linked to specific platforms, including a Telegram-related dump with 60 million records and another linked to Russian sources with over 450 million.

The records were mostly found on unsecured Elasticsearch and cloud storage systems. Though these databases were exposed only briefly, researchers were able to download their contents. The origin of the leak remains unclear, but experts suspect cybercriminal involvement.

According to Cybernews, new credential dumps have been surfacing every few weeks, signaling an ongoing threat. The scale and recency of the latest breach has raised concerns across the crypto and digital asset community.

PearPass is expected to be released soon, as Tether continues to position itself at the center of data privacy and digital asset security conversations.

For now, Ardoino’s message to the public is clear: trust in the cloud is eroding fast, and users may need to take control of their own keys.

Tether Unveils Plans for Decentralized AI Platform with Built-In Crypto Payments

Tether is expanding beyond stablecoins and into artificial intelligence with the upcoming launch of Tether AI, a decentralized, open-source AI platform designed to run on peer-to-peer networks.

Unveiled by CEO Paolo Ardoino on May 5, Tether AI will support direct payments in USDT and Bitcoin, and will operate without centralized servers or API keys.

It’s described as a modular AI runtime capable of running on any device, offering developers greater privacy, autonomy, and security.

At its core is a concept called “Personal Infinite Intelligence”, suggesting customizable AI agents tailored to user needs and hardware.

Tether’s in-house AI models are already powering tools like a translation service, voice assistant, and Bitcoin wallet assistant, according to Ardoino.

The move comes as Tether reported over $1 billion in Q1 2025 operating profit, fueled by strong returns from its $120 billion U.S. Treasury exposure, per its latest attestation by BDO.

Tether’s USDT remains the leading stablecoin globally with a $150 billion market cap and a 66% market share, according to Nansen.