Tether CTO Dispels USDT Redemption FUD, Claims Singapore Has Been a Prohibited Region for Three Years.
Cake Group CEO questions USDT redemption in Singapore; Tether CTO dispels FUD, clarifying historical context and prohibited regions.
In a recent tweet, Julian Hosp, the Chief Executive Officer of Cake DeFi Group, expressed uncertainty about the possibility of redeeming the Tether USD (USDT) stablecoin into fiat currency.
He attributed this uncertainty to a supposedly recent change in Tether’s Terms of Service (ToS) that affected users in Singapore. In his words:
“I won’t be able to tell you if redeeming USDT into USD is actually possible due to being in Singapore, which was a recent change to the Tether ToS from one day to another.
Ok, so, I won't be able to tell you if redeeming $USDT into $USD is actually possible, due to being in #Singapore, which was a recent change to the @Tether_to ToS from one day to another. Interesting. pic.twitter.com/1YzNqkbjMO
— Dr. Julian Hosp (@julianhosp) September 25, 2023
Moreover, Hosp reached his conclusion after communicating with Tether’s compliance team in a recent email. He attached a screenshot of the email response to the tweet.
Based on the response, the Tether compliance team noted they cannot onboard Cake DeFi as a customer. The team cited that crypto shareholders residing in Singapore can no longer be their customers.
“Accordingly, your account verification will be restricted; you will not be permitted to be issued or redeem from the platform,” the statement read in part.
The Cake Group CEO found Tether’s service change “interesting.” According to him, the change was made “from one day to another” without much notice. Hosp’s tweet attracted significant attention from the crypto community as it created an air of fear, uncertainty, and doubt (FUD).
Tether CTO Dispels FUD
Paolo Ardoino, Tether’s Chief Technology Officer (CTO), weighed in on the matter and urged caution amid the growing FUD. Ardoino pointed out the importance of verifying information before making sweeping statements.
Specifically, he stressed the need for crypto enthusiasts to take a closer look at historical data, particularly web archives, to understand the situation better.
Before spreading FUD it would be great if you guys did take a look at webarchive… This is Jan 2022….
And if you open the link below: Last updated: May 12, 2020…
Again, take a moment to search and verify information before YOLO posting.https://t.co/dMbDCxwbdu https://t.co/K7ugOrZMNs pic.twitter.com/NPnitUBbpY— Paolo Ardoino ? (@paoloardoino) September 25, 2023
The Tether CTO argued that the disputed service change was not recent. His tweet suggested that Singapore has been a prohibited region for at least three years.
Besides, Singapore is not the only country in the prohibited region. According to the shared link, the listing includes Cuba, Iran, Pakistan, the Democratic People’s Republic of Korea (North Korea), the Government of Venezuela, Syria, and Crimea.