CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • DeFi & NFT
  • Buy
  • Language
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • DeFi & NFT News
  • Bitcoin Price Analysis
  • CryptoPotato Crypto Fund
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • bitcoin
    BTC$24,841.00
  • ethereum
    ETH$1,922.78
    • Market Updates
    • BTC Analysis
    • ETH Analysis
    • XRP Analysis
    • Interviews
    • Opinions
    CryptoPotato
    CryptoPotato
    • Crypto News
    • Margin Trading
    • Guides
      • Bitcoin & Crypto Guides 101
      • Bitcoin For Beginners
      • Editorials
    • DeFi & NFT
    • Buy
    • Language
    • Crypto News
    • Bitcoin For Beginners
    • Cryptocurrency Guides 101
    • Editorials
    • Bitcoin & Crypto Margin Trading
    • DeFi & NFT News
    • Bitcoin Price Analysis
    • CryptoPotato Crypto Fund
    • Ethereum (ETH) Price Analysis
    • Ripple (XRP) Price Analysis
    • Market Updates
    • Interviews
    • Buy Bitcoin with Card
    Home » Crypto News » Old News With Dubious Sources: Tether Responds to Bloomberg’s Accusations

    Old News With Dubious Sources: Tether Responds to Bloomberg’s Accusations

    Author: Martin Young

    Last Updated Oct 8, 2021 @ 06:23

    Bloomberg has continued its campaign to discredit Tether with another article questioning the backing and reserves of the world’s most popular stablecoin.

    Bloomberg launched a scathing attack on the stablecoin issuer in a BusinessWeek article on Oct. 7 titled “Anyone Seen Tether’s Billions?”

    In it, the financial news giant stated that the stablecoin is essentially a fraud because it does not have the assets to back it. At the time of writing, there were 69 billion USDT tokens in circulation, according to Tether’s own transparency report.

    “Tether Holdings doesn’t have enough assets to maintain the 1-to-1 exchange rate, meaning its coin is essentially a fraud.”

    As if to run salt in the wounds, Bloomberg followed up with another article on Oct. 8 highlighting the key points from the previous one.

    It claims that part of Tether’s reserves includes “billions of dollars of short-term loans to large Chinese companies.” It added that some loans are crypto-backed, but Tether has already confirmed this.

    Bloomberg pointed at Tether Chief Financial Officer Giancarlo Devasini, citing former chief executive officer of Noble Bank, John Betts. He alleges Devasini invested some of the reserves “to earn potentially hundreds of millions of dollars of profit for himself.”

    ADVERTISEMENT

    It also reiterated older reports that Tether executives were targets of a criminal bank fraud investigation by the U.S. Department of Justice.

    Tether Bites Back

    Tether posted a response to the scathing reports on Oct. 7, stating it was:

    “A one-act play the industry has seen many times before, taking snippets of old news from various places and dubious sources, and making it fit a pre-packaged and pre-determined narrative.”

    Tether dismisses Bloomberg story as old news with dubious sources ⬇️https://t.co/7R6ezwpBwp

    — Tether (@Tether_to) October 7, 2021

    The company added that Bloomberg “refuses to let the facts get in the way of the story” and relied on John Betts, whom Tether fired as its banker. Tether fingered Betts in return, adding that:

    “Betts has also been accused of engaging in egregious and wasteful self-dealing and seeking to enrich himself at Noble’s expense.”

    When Audit?

    Tether maintains that all of its tokens are “fully backed” but has yet to submit a complete and full audit of its reserves. According to a court filing in May, USDT reserves are heavily dollar-weighted but also include cash equivalents, bonds, secured loans, crypto assets, and other investments.

    In late July, Tether general counsel Stuart Hoegner stated that the firm hopes to be the first to conduct a full audit which will be coming in months, not years.

    U.S. regulators meanwhile continue to put the squeeze on stablecoins with the same tired claims that they threaten the traditional financial system. In essence, this was their purpose, as Tether attests in its rebuttal.

    “While this may threaten the establishment of traditional financial systems, we will continue to work for the underrepresented.”

    SPECIAL OFFER (Sponsored)
    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

    PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.

    You Might Also Like:

    • tether2
      Tether Calls Recent Bloomberg Report of an Alleged DOJ Probe Clickbait
    • TetherEthereum
      Tether Hasn't Issued USDT on Ethereum Since May: CTO Not Concerned
    • TetherUSD
      Tether's Reserves are 'Fully Backed,' Company Cites Another Audit
    Tags: Stablecoins Tether (USDT)
    Enjoy reading? Share with your friends
    Facebook Twitter LinkedIn Telegram

    About The Author

    Martin J. Young
    More posts by this author

    Martin has been writing on cybersecurity and infotech for over two decades. He has previous trading experience and has been covering developments in the blockchain and cryptocurrency industry since 2017. Contact Martin: LinkedIn

  • bitcoin
    BTC$24,841.00
  • ethereum
    ETH$1,922.78
  • Join Our Community

    FacebookTwitter YouTubeTelegram


    Editorials
    Users in Web3 Will Do a lot More Than Just Trade Crypto: Cronos’ Ken Timsit (Interview)

    Users in Web3 Will Do a lot More Than Just Trade Crypto: Cronos’ Ken Timsit (Interview)

    Institutions Are Starting to Buy Back: Interview with Nansen

    Institutions Are Starting to Buy Back: Interview with Nansen

    Top 5 Most Common Scams Related to Ethereum 2.0

    Top 5 Most Common Scams Related to Ethereum 2.0

    What is the Merge? What You Need to Know About the Transition to Ethereum 2.0

    What is the Merge? What You Need to Know About the Transition to Ethereum 2.0

    These are the Bear Market Benefits, and the Future of NFTs: DappRadar CEO (Interview)

    These are the Bear Market Benefits, and the Future of NFTs: DappRadar CEO (Interview)

    5 Common Mistakes to Avoid During a Crypto Bear Market

    5 Common Mistakes to Avoid During a Crypto Bear Market

    The Cardano Roadmap Eras Explained: Byron, Shelley, Goguen, Basho, and Voltaire

    The Cardano Roadmap Eras Explained: Byron, Shelley, Goguen, Basho, and Voltaire

    Join Our Newsletter
    Become a CryptoPotato VIP
    One Weekly Email Can Change Your Crypto Life.
    Sign-up FREE to receive our extended weekly market update and coin analysis report
    We NEVER send spam. You can unsubscribe at any time.
    Invalid email address
    Thanks for subscribing!
    Footer Logo
    About
    Advertise on CryptoPotato
    About Us | Contact Us | Careers

    Terms of service | Privacy Policy | GDPR
    More Sections
    IEO List | Evaluations
    Airdrops
    Scholarship
    Cannabis Stocks News | Market Analysis
    Disclaimer
    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
    © Copyright CryptoPotato 2016 - 2021
    Scroll to top
    One Weekly Email Can Change Your Crypto Life.

    Sign-up FREE to receive our extended weekly market update and coin analysis report

    We never send SPAM. You can unsubscribe at any moment
    Invalid email address
    Thanks for subscribing!