Kiffmeister’s #Fintech Daily Digest (10/08/2021)

Anyone Seen Tether’s Billions?

A Bloomberg article made numerous claims against Tether, including that its chief financial officer Giancarlo Devasini has used the company’s reserves to make investments, that seem to contradict Tether’s public position that the holdings were fully backed at all times. In addition, the article alleges that Tether has invested in Chinese firms and issued crypto-backed loans “worth billions of dollars.” Furthermore, Wall Street traders were canvased to see if any had ever seen any trades made by the company, which supposedly holds $30 billion in commercial paper short-term loans — suggesting the fact that none had seen any should raise eyebrows. Additionally, only one bank was located — in the Bahamas — that was working with the firm. Tether called the article “another tired attempt to undermine” the company, pointing to its recent quarterly report on its holdings to demonstrate that it is 100% backed, although not offering any detail on its asset holdings that would concretely refute the Bloomberg article’s contentions. [Read more

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