{"id":349793,"date":"2021-10-07T23:18:38","date_gmt":"2021-10-07T20:18:38","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/tether-fires-back-against-report-it-is-using-reserves-for-investments-and-making-crypto-backed-loans\/"},"modified":"2021-10-07T23:18:38","modified_gmt":"2021-10-07T20:18:38","slug":"tether-fires-back-against-report-it-is-using-reserves-for-investments-and-making-crypto-backed-loans","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/tether-fires-back-against-report-it-is-using-reserves-for-investments-and-making-crypto-backed-loans\/","title":{"rendered":"# Tether fires back against report it is using reserves for investments and making crypto-backed loans"},"content":{"rendered":"

“# Tether fires back against report it is using reserves for investments and making crypto-backed loans <\/strong>”
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Tether (USDT), the largest stablecoin issuer by market capitalization, has refuted the details of a Bloomberg story on its reserves holdings.<\/p>\n

In a Thursday report, Bloomberg journalist Zeke Faux made<\/a> numerous claims against Tether, including that its chief financial officer Giancarlo Devasini has used the company\u2019s reserves to make investments, that seem to contradict Tether\u2019s public position that the holdings were fully backed at all times. In addition, Faux alleges that Tether has invested in Chinese firms and issued crypto-backed loans \u201cworth billions of dollars.\u201d According to the report, he was only able to confirm one bank in the Bahamas was working directly with Tether.<\/p>\n

\u201cTether still hasn\u2019t disclosed where it\u2019s keeping its money,\u201d said Faux. \u201cIf Devasini is taking enough risk to earn even a 1% return on Tether\u2019s entire reserves, that would give him and his partners a $690 million annual profit. But if those loans fail, even a small percentage of them, one Tether would become worth less than $1.\u201d<\/p>\n

Tether called<\/a> the report a \u201ctired attempt\u201d to undermine the company based on \u201cinnuendo and misinformation.\u201d The stablecoin issuer challenged the credibility of Faux\u2019s sources as an attempt \u201cto discredit Giancarlo Devasini and Tether\u2019s executives\u201d and continued to claim its USDT tokens are \u201cfully backed,\u201d citing its quarterly assurance reports.<\/p>\n

In February, Tether and Bitfinex agreed to pay New York state $18.5 million in damages and provide extensive reports on its finances as part of a settlement with the New York Attorney General<\/a>\u2019s Office \u2014 the most recent audit was filed<\/a> with information reported as of June 30. Authorities had claimed Tether misrepresented the degree to which its USDT tokens were backed by fiat collateral. <\/p>\n

Related: <\/em><\/strong>Stablecoins under scrutiny: USDT stands by \u2018commercial paper\u2019 tether<\/em><\/strong><\/p>\n

The Bloomberg report comes as many speculate whether China\u2019s second-largest property developer, Evergrande Group, will default on $300 billion in debts. According to Faux, Tether denied holding any debt from Evergrande but would not confirm whether it held commercial paper from other Chinese firms.<\/p>\n