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Tether [USDT] gets a new lease of life as latest research points to the trail of billions


ambcrypto.com 18 December 2018 10:30, UTC
Reading time: ~2 m

Tether [USDT], which has been quite active on the cryptocurrency charts due to the price changes, is no stranger to being in the news spotlight. Several reports have targeted the sixth largest cryptocurrency which has come under fire several times before mainly because of fraud claims.

In a research conducted by Bloomberg, the notion that Tether does not have the billions of dollars to make it a stablecoin seems to have changed. The new information that has come to light gives more details about the cryptocurrency’s foundation than what was available before.

One snippet of the research shows that on January 21, 2018, $2.2 billion was present in Tether’s holding account in Puerto Rico’s Noble Bank Limited, the same day when CoinMarketCap showed that 2.195 billion was in circulation. Bloomberg’s survey further stated:

“The numbers also match up in September and October 2017. Tether and Bitfinex, a cryptocurrency exchange, are owned by the same executives. The bank statements show money flows between the two after Bitfinex became the only way to buy or sell Tether last year, according to the people familiar with the matter.”

The information garnered by the survey did not elucidate a lot of details such as the origin of the money or its current address. Bloomberg revealed that the information about the funds was provided by individuals close to the company. The veil over the funds was also pointed out earlier by the Winklevoss twins when they had stated that Tether is an unlicensed issuer and does not disclose where the fiat currency is located.

Tether was also in the news recently when Bitfinex announced the addition of USDT/USD and EURT/EUR on their platform.

The announcement stated:

“All existing USD balances on Bitfinex will remain fiat and unaffected by this change. Any Tether deposits initiated before 14:30:00 UTC on the 27th of November will be credited to the user’s fiat wallet balances, whereas Tether deposits initiated after this cutoff time will be credited as Tether (USDT).”

As mentioned earlier, the recent report comes at a time when Tether has been bombarded with multiple attacks. In a news tied to Tether, Nexo, a company that provides crypto backed loans had stated:

“Nexo follows the situation around Tether (USDT) closely. We would like to assure all clients and investors that Nexo has never held significant amounts of Tether (USDT) on its balance sheet. We are soon adding support for more stablecoins.”

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