Protos Media released a report detailing who is buying USDT, pointing out that Tether has grown from a market cap of $1B in 2017 to over $70B at the time of writing.
Sam Bankman-Fried and FTX’s ties to Tether go beyond merely enjoying the increased activity that Tether’s constant printing brings about for exchanges throughout the ecosystem.
The USDT was stolen from a California resident by an individual posing as a Coinbase representative who took control of his account and transferred 200+ BTC, authorities said.
Due to Tether’s legal troubles, the Ontario securities regulator has placed the digital currency under “Prohibited Crypto Assets,” the only asset under this category.
The fact that billions in fresh capital allegedly continue to pour into Tether’s coffers despite the looming threat of more legal action will only fuel skepticism surrounding the existence of the fiscal reserves backing USDT.
The jig may be up for the Tether stablecoin following a trainwreck CNBC interview and regulators losing patience with the digital currency sector’s aversion to oversight.
While the sheer size of the Tether and USDT scheme makes them lightning rod for stablecoin criticism, they aren’t the only stablecoin.
A recent announcement from the bank Tether uses (Deltec Bank) has once again called the amount of reserves Tether has into question.
The swaps are quoted in USDT, marking the first time Huobi Futures has offered such trades entirely in digital currency.
Authorities identified bank accounts belonging to digital currency OTC traders suspected of involvement in illegal money laundering activity.
Given the concern regarding Tether actually being fully backed, the event seems counter-intuitive to what is supposed to be the nature of Bitcoin.