{"id":355288,"date":"2021-10-20T07:41:41","date_gmt":"2021-10-20T04:41:41","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/mashinsky-says-usdt-is-minted-for-crypto-as-1m-bounty-offered-to-unpick-reserves\/"},"modified":"2021-10-20T07:41:41","modified_gmt":"2021-10-20T04:41:41","slug":"mashinsky-says-usdt-is-minted-for-crypto-as-1m-bounty-offered-to-unpick-reserves","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/mashinsky-says-usdt-is-minted-for-crypto-as-1m-bounty-offered-to-unpick-reserves\/","title":{"rendered":"# Mashinsky says USDT is minted for crypto as $1M bounty offered to unpick reserves"},"content":{"rendered":"<p>&#8220;<strong># Mashinsky says USDT is minted for crypto as $1M bounty offered to unpick reserves  <\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMTAvODcyODc3N2QtZmI4MC00MWM3LWFmOTYtMzNmMTk4ODRiNTY2LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-128018ef>A bounty of up to $1 million has been offered up to anyone who can cast light on the precise backing of Tether\u2019s reserves. <\/p>\n<p>That backing just got a little bit murker, after Celsius Network CEO Alex Mashinsky reportedly said that Tether mints new USDT in exchange for crypto assets \u2014 which <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ears to conflict with Tether\u2019s own terms and conditions.<\/p>\n<p>&#8220;Forensic financial research&#8221; firm Hindenburg Research tweeted on Oct. 20 to its 171K followers that it holds &#8220;doubts about the legitimacy of Tether,&#8221; and offered a reward of up to $1 million for important details on Tether\u2019s reserves which it claims could pose a threat to investors on a \u201csystemic\u201d scale. <\/p>\n<blockquote><p>\u201cTether is a key underpinning of the multi-trillion-dollar crypto market. Yet despite its repeated claims of transparency, its disclosures around its holdings have been opaque.\u201d<\/p><\/blockquote>\n<p>\u201cThe company claims to hold a significant portion of its reserves in commercial paper yet has disclosed virtually nothing about its counterparties,\u201d Hindenburg Research added.<\/p>\n<p>But, as more than a few observers noted, $1 million isn\u2019t a lot of money to dish the dirt on a token with a $70 billion market cap.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Tether will gladly pay you 10 times this in Tethers to keep your mouth shut, I\u2019d bet <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/CSgei3yWIx\">https:\/\/t.co\/CSgei3yWIx<\/a><\/p>\n<p>\u2014 Cas \u201cMildly Interesting\u201d Piancey (@CasPiancey) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/CasPiancey\/status\/1450564961990709251?ref_src=twsrc%5Etfw\">October 19, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Tether has been the subject of intense scrutiny, with regulators taking action against the firm on multiple occasions over the composition of its reserves. In May Tether published a loose reserve breakdown in May which showed a large amount of unspecified commercial paper, along with minimal cash or bank deposits. <\/p>\n<p>On Oct. 15 Tether and its sister company Bitfinex reached a settlement to pay $42.5 million to the Commodity Futures Trading Commission, which claimed Tether did not have sufficient cash reserves for two thirds of the period between 2016 and 2018. <\/p>\n<p>Tether settled but it denied the claims noting there was \u201cno finding that Tether tokens were not fully backed at all times\u2014simply that the reserves were not all in cash and all in a bank account titled in Tether\u2019s name, at all times.\u201d <\/p>\n<p>It went on to say: \u201cAs Tether represented in the Order, it has always maintained adequate reserves and has never failed to satisfy a redemption request.\u201d <\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Crypto lending firm Celsius Network raises $400M<\/em><\/strong><\/p>\n<p>Meanwhile Celsius CEO Alex Mashinsky is facing his own regulatory issues after the New York Attorney <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">General<\/a>\u2019s office began looking into his firm and another stablecoin lending platform this week.<\/p>\n<p>In a subsequent interview, Mashinsky told the Financial Times on Oct. 19 that as part of a lending agreement, Tether minted new USDT tokens in exchange for digital assets:<\/p>\n<blockquote><p>\u201cIf you give them enough collateral, liquid collateral, Bitcoin, Ethereum and so on . . . they will mint Tether against it.\u201d<\/p><\/blockquote>\n<p>\u201cNew USDT is issued for such loans,\u201d he added, stating that the new USDT is later destroyed after the loan is closed in order to not \u201cpermanently increase USDT in circulation\u201d.<\/p>\n<p>Such a lending structure on the face of it would appear in violation of Tether&#8217;s terms of service which state:<\/p>\n<blockquote><p>\u201cTether will not issue Tether Tokens for consideration consisting of the Digital Tokens (for example, Bitcoin); only money will be accepted upon issuance.\u201d<\/p><\/blockquote>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/mashinsky-says-usdt-is-minted-for-crypto-as-1m-bounty-offered-to-unpick-reserves\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Mashinsky says USDT is minted for crypto as $1M bounty offered to unpick reserves &#8221; A bounty of up to $1 million has been offered up to anyone who can cast light on the precise backing of Tether\u2019s reserves. That backing just got a little bit murker, after Celsius Network CEO Alex Mashinsky reportedly&#8230;<\/p>\n","protected":false},"author":1,"featured_media":355289,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMTAvODcyODc3N2QtZmI4MC00MWM3LWFmOTYtMzNmMTk4ODRiNTY2LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[75422,77595,75493,117,36041],"class_list":["post-355288","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-cftc","tag-lending","tag-stablecoin","tag-business","tag-tether"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/355288","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=355288"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/355288\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/355289"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=355288"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=355288"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=355288"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}