The days when Tether’s cash reserves were not sufficient to back up all the USDT stablecoin tokens are gone. This conclusion can be made based on the statement of Tether technical director Paolo Ardoino.
. @Cointelegraph ‘s quick mafh https://t.co/e2ECGS8hUk pic.twitter.com/qD6Ieun2E8
— Paolo Ardoino (@paoloardoino) January 20, 2021
Ardoino quoted a Twitter user as saying that the USDT’s incomplete provisioning is not true. Earlier, the company’s lawyer confirmed that USDT is backed by fiat equivalents by 74%, and the rest of the collateral is represented by other financial instruments, primarily a loan provided from Tether’s reserves to its sister exchange Bitfinex.
“On a recent podcast, Ardoino and attorney Stuart Hegner repeatedly stated that USDT is fully backed. This 74% refers to 2018, when the remaining 26% came from collateral. Now the loan is no more than 2.5%, and USDT has excess collateral, ”wrote the user Ardoino refers to.
Meanwhile, developments related to the harassment of Bitfinex and Tether by the New York Attorney General’s Office due to the said loan continue to unfold. Today it became known that the parent company of the exchange and issuer iFinex Inc sent a request to the Supreme Court of New York to once again postpone the transfer of documents to the prosecutor’s office. According to lawyers, this will take the company 30 days.
The documents were supposed to be handed over by January 15th. This date was also set as a result of the postponement of December 16. The company noted that it has already sent a “substantial amount” of materials, but it still needs time to obtain additional agreed documents.
“The parties will need a few more weeks to provide additional information, and the prosecutor’s office – to study it and discuss further actions, if necessary,” – said lawyers for iFinex.
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