Financial investigation company Hindenburg Research said it “doubts the legality of Tether.”
Hindenburg Research suggested reward of up to $ 1 million for data on Tether financial reserves, which secured the USDT stablecoin. The company claims that the lack of information on the financial backing of the stablecoin poses a systemic risk for investors globally.
“Tether is the backbone of the multi-million dollar crypto market. However, despite repeated statements from the company about transparency of stablecoin collateral data, disclosure of assets that provide USDT value has not been sufficiently transparent. The company claims to hold a significant portion of its reserves in commercial paper, but does little to disclose its counterparties, ”said Hindenburg Research.
In response to a proposal from Hindenburg Research, Twitter users noted that $ 1 million is not enough to provide information compromising a stablecoin with a market cap of $ 70 billion.
The release of the stablecoin Tether has long been the subject of scrutiny. In July, the US Department of Justice announced that it will analyze the company’s activities in the early stages of its operation, as the issuer of the stablecoin USDT is suspected of withholding information from banks. In August, auditing firm Moore Cayman published a report according to which about 85% of USDT is backed by traditional currencies and obligations in them.
In addition, the US Commodity Futures Trading Commission (CFTC) recently accused Tether and Bitfinex of making false statements to investors and illegal transactions with US citizens. In February, the New York Attorney’s Office (NYAG) settled a lawsuit with Bitfinex and Tether. The companies have paid a fine of $ 18.5 million and will provide quarterly reports on their activities.
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