Tether said in July 2022 it held no Chinese commercial paper. That was a lie, one of many now exposed.
Tether Drops Opposition to Blocking Transparency of Stale News
Opposition Dropped
Surprise, Surprise
Which Lie Do You Believe?
Biggest Crypto Stablecoin Tether Was Once Backed by Chinese Securities
Bloomberg reports Biggest Crypto Stablecoin Tether Was Once Backed by Chinese Securities
Tether Holdings Ltd. once counted securities issued by Chinese companies among the reserves backing its USDT stablecoin, the world’s largest, documents released by New York’s Attorney General show.
Tether, which in February 2021 reached a settlement with the NY AG’s office over allegations that it lied about its reserves and hid losses, provided letters, banks accounts, reserve holdings and wallet addresses through the law firm Steptoe. The documents, which list Tether’s assets as of March 31, 2021 and were handed over to the NY AG, also detailed procedures for detecting money laundering.
The NY AG released the documents in response to a freedom of information request from Bloomberg News, following an earlier request by crypto publication CoinDesk.
Tether also held securities issued by companies ranging from Deutsche Bank AG to Barclays Bank Plc and ArcelorMittal SA, according to the documents.
In addition, it had US dollars and Bitcoin deposited on Bitfinex, the crypto exchange with which it has an affiliation.
Lending
Tether issued loans in USDT to third parties. Its lending program reached $5.1 billion and had fewer than 30 borrowers as of March 31, 2021, the documents show.
The loans were secured with collateral in the form of digital assets, such as Bitcoin or Ether, or securities.
The document also mentioned that Tether made a loan to Bitfinex, which repaid the full principal on Jan 13, 2021. Bitfinex borrowed more than $600 million from Tether in 2018, a transaction made public later in 2019 when the NY AG alleged the exchange lost $850 million in customer and corporate funds to payment processor Crypto Capital Corp.
Balance Sheet Hole
No Clean Audit
- There is still no clean audit of tether.
- The company was was in clear violation of US securities laws.
- It lent client deposits while alleging 1-1 backing to US dollars.
- It had exposure in yuan and Bitcoin.
- And it lost at least $850 million to payment processor Crypto Capital Corp.
Tether is Next
“‘Tether is next’ says short seller who bet against Silvergate and Signature Bank”
“Because they sit on top. And they’re unaudited” and haven’t backed up their claims, Cohodes said. “It’s just a matter of going up the chain.”
