New Bloomberg Report Says Tether (USDT) May Indeed Have the Billions in Backing Its Stablecoin
Tether has been a stablecoin from the start, which is what they’ve claimed. There’s been numerous reports about their validity as such, and there’s been documentation provided that is rumored to be false. However, based on a recent Bloomberg report on December 18th, it is possible that there is finally some verification for their claims.
Skeptics have maintained their position that Tether hasn’t maintained the backing that it claimed, but Bloomberg managed to view several statements for the last few months that say otherwise. The documents don’t actually provide a complete account of the state of Tether’s finances, but there’s much more than the public has been privy to at this point.
Based on the details provided to Bloomberg, it looks like the funds at Noble Bank Ltd. in Puerto Rico match up for that 1:1 support in January of this year, with the statement showing $2.2 billion in their accounts. On the same day, January 31st, the total Tethers in existence was 2.195 billion. The numbers matched up for September and October of last year as well. The statements also show Bitfinex and Tether maintaining a flow of money between their exchanges, considering that Tether was only able to be purchased or sold through the crypto exchange. Both parties have the same executives as well, which may have played a role.
Thousands of people, if not more, are still curious about whether Tether is a scam, and the continued release of all of this information has done little to quash it. In January, the U.S. Commodities Futures Trading Commission subpoenaed documents from both Tether Ltd. and Bitfinex in an attempt to check their finances. Though this investigation was started in January, there’s no details about what is presently happening with it.
The statements that Bloomberg gained access do omit the origination of the funds and their current location. Though the information was provided by an individual with access to these records, the individual remains unnamed, vetted by a government official. Over the last three years, Tether and Bitfinex have struggled to find a banking partner to support their efforts.
Though the general counsel for the two companies, Stuart Hoegner, didn’t want to speak on the cash balances, he offered these details on the investigation via email: “As a company that takes its legal and compliance obligations very seriously, we are not in a position to comment on the discussions we have nor to acknowledge the existence of subpoenas or similar requests.
Without cash, Tether would be looking at catastrophic consequences, especially considering that it ranks #6 of cryptocurrencies by market cap alone. It is frequently used for Bitcoin transactions, and even operates as a “quasi-bank.” To add to their troubles, there’s a whole different worry that Tether is participating in market manipulation, which the U.S. Justice Department is investigating. Even if the regulators are satisfied that Tether has the funds they claim, the potential for their involvement in price manipulation keeps the feds interested.
Presently, Tether’s USDT token is trading at $1.01, based on details from CoinMarketCap.