Tether, one of the largest stablecoin providers, recently issued a comprehensive rebuttal addressing growing concerns regarding the inclusion of securities issued by Chinese companies in USDT reserves.
In response to reports published by the mainstream media, Including BloombergThe company sought to clarify its position on the matter.
These reports, citing documents released by the New York Attorney General (NYAG), drew attention to past support for USDT by securities from Chinese state-owned companies, including the Industrial and Commercial Bank of China, China Construction Bank, and Agricultural Bank. China.
Tether’s detailed response aims to shed light on the situation, and provide a deeper understanding of the company’s practices and the rationale behind the formation of its reserve.
Tether clears up the misconceptions surrounding recent reports
In response to reports of Chinese securities being included in its reserves, Tether’s chief technology officer, Paolo Arduino, took to Twitter to assert that documents released by New York’s attorney general proved critics wrong in the various lawsuits against the company.
Arduino specifically mentioned the accusation of not having a bank account, noting that the documents provided evidence to the contrary.
With regard to Chinese securities, Arduino driver company against those who accused her of holding onto debt from troubled Chinese property developer Evergrande.
As announced yesterday @tweet He decided to stop opposing the FOIL issue in the United States, in favor of transparency in our industry.
Today, the information has been assimilated and used by only a few media outlets, starting with Bloomberg. Others will follow soon.
the information… https://t.co/RhiUrZoh09
– Paolo Ardoino 🍐 (@paoloardoino) June 16, 2023
He described these defendants as “a few buffoons” and argued that the documents vindicated Tether in this respect.
in Twitter postTether’s official account also expressed its opinion on the media coverage, suggesting that outlets like Bloomberg and CoinDesk may have rushed to provide the information without looking at current events or thoroughly checking the facts.
Everything you need to know about what we’ve shared with NYAG
Read more https://t.co/0O3P1tbtYq pic.twitter.com/pegeX2uNBN
– tether (Tether_to) June 16, 2023
The company stated that it does not endorse such behavior and stressed that its main focus is on serving its customers.
Furthermore, Tether explained that the material obtained by the media does not accurately represent the company’s current state.
Bitcoin is back in the $26K territory on the weekend chart: TradingView.com
The stablecoin issuer notes that the data provided to the media platform is limited and more than two years old, indicating that it does not reflect Tether’s current composition or practices.
Where do the accusations come from?
The accusations surrounding Tether and its involvement in Chinese securities stemmed from an investigation by Letitia James, the New York attorney general, that began in April 2019.
At the time, James’s office was actively looking into whether cryptocurrency exchange BitFinex had hidden significant losses of up to $850 million from its investors.
Of these alleged losses, about $700 million was reportedly related to Tether reserves, which James referred to as BitFinex’s “flying fund”.
In the end, the case Reached a settlement in February 2021leading to dire consequences for both parties involved.
BitFinex and Tether were subsequently banned from conducting business in New York State as part of the terms of the settlement.
Featured image from Financial Times