en
Back to the list

Hindenburg Research Targets Tether with $1M Bounty Program

source-logo  blockworks.co  + 7 more 20 October 2021 01:28, UTC

Forensic financial research and famous short selling firm, Hindenburg Research, announced a Tether Bounty Program with a reward of up to $1 million for anyone who can provide deeper insight into the backing of the largest stablecoin in the digital asset space.

We have doubts about the legitimacy of Tether, so today we announce the Hindenburg Tether Bounty Program, a reward of up to $1,000,000 for details on Tether’s backing.

(1/x)https://t.co/DP5dWDcYmJ

— Hindenburg Research (@HindenburgRes) October 19, 2021

The stablecoins issuer had long claimed to be backed one-to-one by traditional currency reserves. However, the company has since revealed that it is only backed by a small percentage of what many people consider to be traditional currencies. 

Tether has been under scrutiny for a year. They have paid out numerous fines, been probed by the DOJ, and reportedly lent out Tether with other cryptocurrencies used as collateral.

On October 18, the New York Attorney General took aim at the crypto lending industry, announcing investigations into Nexo and Celsius, and probing ties to Tether Limited.

Upon Tether’s release of information regarding its reserves, there have been reports of Tether being among the largest holders of commercial paper in the world. 

Regulatory attention

Lately, Tether has garnered the attention of regulators who worry that the stablecoin could present systemic issues in debt markets if there were ever to be a bank-run situation where Tether was forced to liquidate their reserves to pay out redemptions. 

According to Hindenburg’s press release, the bounty program incentivizes users to submit any relevant information on Tether’s backing for a chance to earn up to $1 million if the information is deemed useful. 

“We feel strongly that Tether should fully and thoroughly disclose its holdings to the public. In the absence of that disclosure, we are offering a $1,000,000 bounty to anyone who can provide us exclusive detail on Tether’s supposed reserves,” said Hindenburg Research founder, Nathan Anderson. 

Hindenburg claims they are seeking to advance the public knowledge of a growing threat to crypto markets. The firm also disclosed that they do not hold positions, either long or short, in Tether, bitcoin or any cryptocurrency.

As of press time, Tether has a market capitalization of $69,050,000,000, making it the fifth-largest cryptocurrency in the entire digital asset market

blockworks.co

Similar news (7)
Add similar news