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Tether under fire from Bloomberg

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Crypto News

There are various types of currencies in the industry, including the so-called stable stablecoins. Recall that stablecoins are digital currencies tied to a specific asset, which allows keeping the token rate at about the same level. For example, a peg to the US dollar is used. Tether is the largest stablecoin with a market capitalization of over $ 69 billion.

Tether is now under fire for possible speculation on the famous Ponci scheme. Bloomberg Businessweek today posted a series of tweets indicating that the company is engaging in a scam.

The same was stated in a report titled “Has anyone seen billions of Tethers.” It accuses stablecoin. According to them, Tether has invested part of its reserves in Chinese commercial paper. The report says the reserves include billions of dollars in short-term loans to large Chinese companies.

According to John Betts, former CEO of Noble Bank International in Puerto Rico, Tether’s management is putting reserves at risk by investing only to profit solely for themselves.

And that is not all. Businessweek informsthat Tether executives are also under criminal investigation in the United States. The FBI is currently investigating whether management has used fraudulent methods to open accounts.

It is clear that the management of the USDT issuer decided to react quickly to the report. The team denied the claims, saying it was nothing more than fake news from news portals. The management believes that this is another attempt to tarnish Tether’s reputation, and this is done by those who do not understand anything about the industry.

Tether officials point out that all tokens are fully collateralized and the company is a leader in transparency, providing quarterly reports indicating that there are no financial problems. Reports confirm that the vast majority of commercial paper held by Tether is held by issuers rated A-2 or higher.

However, despite all the assurances that the company is doing well, for some unknown reason, the Twitter account belonging to the CEO of Tether was deleted today.

What happened to the Tether CEO’s account?

A Twitter account owned by Tether CEO Jan Ludovicus van der Velde has been deleted either by himself or by someone with access to it. Van der Velde’s account was previously @urwhatuknow. His last tweet, posted on October 4, is still available as an archived page.

Oddly enough, he anticipates a Bloomberg article and indicates that a magazine is trying to come up with another fake about Tether in order to gain even more popularity.

Very little is known about the CEO himself, as he almost never spoke to reporters about Tether and its subsidiary. Bitfinex.

It is possible that Van der Velde’s account was deleted in order not to create unnecessary problems. In many ways, this is reminiscent of the situation in 2019, when Craig Wright of Bitcoin SV removed his account from Twitter after the conflict. In the meantime, other Tether executives such as CTO Paolo Ardoino are still active on Twitter. Or it may be that the account was deleted in order to start a new stage of the fight against Bloomberg,

Does the deletion of the account relate to loans with Chinese companies? Perhaps, but there is no exact information, at least for the time being. But there is no doubt that the scandal over the purity of loans issued to companies from the PRC will continue. In turn, representatives of Tether will retaliate, convincing everyone that this is nothing more than a dirty information campaign.

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Author: Vadim Gruzdev, analyst at Freedman Сlub Crypto News


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