Tether Reserves, publisher of USDT stablecoin, is still a controversial topic. Hindenburg Research, an investment research firm, is promising a $1 million reward to anyone who can shed light on the exact composition of Tether’s reserves.
We have doubts about the legitimacy of Tether, so today we are announcing the Hindenburg Tether Bounty Program, a reward of up to $1,000,000 for details on supporting Tether.
(1 / x) https://t.co/DP5dWDcYmJ
– Hindenburg Research (HindenburgRes) October 19, 2021
Hindenburg describes the previous disclosure of tether reserves as “opaque”. Tether is said to have held a significant portion of its commercial paper reserves, but has not disclosed almost anything about its counterparties.
Hindenburg says she has doubts about the legitimacy of this support due to the lack of transparency. Recent discoveries from Tether show that USDT is backed by only a small percentage of traditional currencies.
Hindenburg said that despite Tether receiving multiple penalties from regulators, the company still refused to provide full transparency to the public about its reserves.
The research firm notes that it has recently emerged that Tether is one of the largest owners of commercial papers in the world, but major trading agencies told the press that they had never worked with Tether. Hindenburg is probably referring to Bloomberg’s “research”.
“We firmly believe that Tether should fully and comprehensively disclose its assets. In the absence of such disclosure, we are offering a reward of $1,000,000 to anyone who can provide us with exclusive details of Tether’s alleged reserves.”
Said Nathan Anderson, founder of Hindenburg Research. In addition, Alex Mashinsky, CEO of Celsius, revealed that Tether created new USDT tokens against other cryptocurrencies. That would be against their own rules.
Exclusive: Tether has been accused of lending new stablecoins in exchange for crypto – an allegation that calls into question the company’s promise that it is only using real dollars to issue its tokens https://t.co/p0AU4cF9Hc
– Financial Times October 19, 2021
Mashinsky claims that if you hand over enough collateral to Tether, which can be Bitcoin (BTC), Ethereum (ETH), etc., they will issue a new USDT for this loan. Subsequently, these stablecoins are destroyed again once the loan is closed.
Mashinsky recently said that Celsius has a $1 billion loan from Tether. Celsius, a cryptocurrency lender that recently raised $400 million, is now the target of an investigation by the New York State Attorney General (NYAG).
There is a lot of misinformation about Tweet embed They float, so we set the record straight here – https://t.co/mupr0ey7aR
– Alex Mashinsky © ️ (Mashinsky) October 19, 2021
Tether and its sister company Bitfinex recently paid a $42.5 million fine to the CFTC for these reserves.
