Tether CEO Jean-Louis van der Velde’s deleted his Twitter account after a Bloomberg report questioned the firm’s endorsement of his reservations. Tether has responded, calling the report misleading and saying that USDT is fully supported.
The CEO of Tether deleted his Twitter account later after a recent Bloomberg report. The article makes several claims, including that Tether owes billions to Chinese investors.
The media said that I had obtained documents showing an account of Tether Holdings’ reserves, which include “billions of dollars in short-term loans to large Chinese companies.”
The report primarily addresses the issue of Tether’s reserves supporting its billions of USDT, something that has been a serious point of contention in the past.
Among other things, it states that Tether has billions in commercial paper from large Chinese companies and that these are being used to support its reserves.
The tether response The article was blunt, criticizing Bloomberg for using questionable sources to “fit into a pre-packaged and predetermined narrative.”
Tether has taken steps in the last 12 months to offer some proof of its reservations. It has published some certifications of its reserves, although some market investors do not believe this is enough to allay concerns.
Bloomberg had informed previously the Justice Department was investigating Tether executives for bank fraud.
As the stablecoin largest on the market, any impact on Tether could spread to the rest of the market. This is a concern that has been discussed over and over again in the past.
As for the CEO’s final tweet, it said that “Another Dying Magazine of Financial Slaves” came up with “FUD” and “stay tuned,” which could be interpreted in many ways.
Could the SEC also be investigating Tether?
There is no official notice from the SEC suggesting an investigation. However, should such development occur, the market would get a much deeper insight into the backing of Tether’s reserves.
I know have registered claims from other outlets that Tether owns Evergrande’s commercial papers, which Tether denies. Such pressure could be the breaking point of the company, which It looks like it will face action after years of scrutiny from both investors and the media.
Social media platforms are having heated discussions about this development. Many crypto investors have criticized Tether in the past for being opaque about its endorsement. and they are eager to see what an SEC investigation might uncover.
The SEC has hinted at an examination of Tether after the Freedom of Information Act (FOIA) indicated the same. As for the Justice Department investigation related to bank fraud, the firm called these “outdated claims.” It is understandable that The increasing number of reports and responses of this type does not give investors much confidence, but how it will play out remains to be seen.
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Tether CEO deletes Twitter account after investigative report – BeInCrypto