Wednesday, December 8, 2021
Home Crypto News Market Financial Investigation Company Hindenburg Research Doubts Tether, Aims To Pay $1,000,000 Bounty...

Financial Investigation Company Hindenburg Research Doubts Tether, Aims To Pay $1,000,000 Bounty For Details On Tether’s Backing

- Advertisement -

Financial investigation company Hindenburg Research said it “doubts the legality of Tether.”



Hindenburg Research has offered a reward of up to $1 million for the data on Tether’s financial reserves that secure the USDT stable coin.

The company claims that the lack of information on the financial backing of the stable coin poses a systemic risk for investors globally.

Hindenburg Research said:

“Tether is the backbone of the multi-million dollar crypto market. However, despite repeated statements from the company about the transparency of stable coin collateral data, disclosure of assets that provide USDT value has not been transparent enough. The company claims to hold a significant portion of its reserves in commercial paper, but does little to disclose its counterparties,”

 

In response to a proposal from Hindenburg Research, Twitter users noted that $1 million is not enough to provide information compromising a stable coin with a market cap of $70 billion.

The release of the stable coin Tether has long been the subject of scrutiny. In July, the US Department of Justice announced that it will analyze the company’s activities.

In February, the New York Attorney’s Office (NYAG) settled a lawsuit with Bitfinex and Tether. The companies have paid a fine of $18.5 million and will provide quarterly reports on their activities.

In August, auditing firm Moore Cayman published a report according to which about 85% of USDT is backed by traditional currencies.

In addition, the US Commodity Futures Trading Commission (CFTC) recently accused Tether and Bitfinex of making false statements to investors and US citizens about Tether backing.

 

- Advertisement -
Jakkkhttps://thecryptobasic.com/
Owner of TheCryptoBasic. Involved in cryptocurrencies for more than five years, Love to trade and write on cryptocurrencies. My primary aim is to provide genuine information to cryptocurrency readers because crypto is filled with frauds and scams. Accurate information is scarce to get. So We at TheCryptoBasic will be providing accurate information about cryptocurrencies topics that users can trust.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Recent News & Articles

Floki Inu To Be Seen At Least 210 Million Times After Floki New Partnership With Russian Most Famous Football Club

 Floki Inu announced a partnership with the Russian most famous Football club "Spartak-Moscow." window.coinzilla_display = window.coinzilla_display ||...

Dogecoin Entered Top 5 Most Searched Google News Queries of 2021

Dogecoin (DOGE) ranked fourth in the list of the most searched Google searches worldwide in the News category in 2021. trends.embed.renderTopChartsWidget("12671d45-ca76-450b-9ced-14f27b4587b4", {"geo":"GLOBAL","guestPath":"https://trends.google.com:443/trends/embed/"}, 2021);...

New Order Announces $NEWO Token Sale Through Dutch Auction On MISO

Toronto, Canada, 8th December, 2021, New Order, a community-driven venture DAO incubator for decentralized financial (DeFi) projects, announced the public sale of its governance...

Billionaire And Former Google CEO, Eric Schmidt Becomes Chainlink Strategic Advisor

Former Google CEO and Billionaire, Eric Schmidt has joined oracle provider Chainlink Labs as a strategic advisor. ...

Shiba Inu Games Became Partners With Australian Playside Studios

Playside Studios (PLY) shares price jumped more than 4% to $0.83 after Australia’s largest publicly listed video games developer entered into a material fixed...

Visa Is Launching An Advisory Practice That Will Help Further Mainstream Adoption Of Bitcoin And Other Digital Assets

Payment giant Visa has announced the launch of a new advisory division to help clients navigate the cryptocurrencies world reported by CNBC.

10% Of Americans Plan To Give Crypto On Christmas As Gift With Bitcoin #1 Choice For Holiday Gifting

Almost every tenth citizen of the United States is ready to give cryptocurrencies as a gift for the New Year, and every fourth is...

Subscribe To Our Newsletter

Get Updated with All The latest Crypto News, Articles, Reviews, Analysis and much more. Delivered Every Monday.