As Tether has become a multi-billion dollar engine of the cryptocurrency market, skeptics have warned that the digital currency whose main selling point is converted into dollars is not really backed by huge amounts of cash.. Bank statements reviewed by Bloomberg News show that these fears may be unfounded.
Tether Appears to Have the Stated Dollar Amount
According to documents reviewed by Bloomberg, the statements spanning four separate months, Tether Ltd.’ details the cash held in the accounts of. People with knowledge on the subject say that at least some statements have been shared with lawmakers. The question is whether there really is $1 in the bank for every Tether. While the documents do not provide full accounting for Tether’s finances, they do provide more details than they have ever been publicly disclosed.
For example, a statement states Tether’s 2.2 billion account in Puerto Rico’s Noble Bank Ltd. as of Jan. 31. indicates a dollar number. On the same day, there were 2.195 billion Tethers, according to data compiled by Coinmarketcap.com.. Figures are also matched in September and October 2017. Tether and Bitfinex, a cryptocurrency exchange, are managed by the same executives. According to people familiar with the matter, bank statements indicate money flows between the two institutions after Bitfinex became the only way to buy and sell Tether last year.
Concerns about Tether are widespread.. When you type “Is Tether a scam” into Google, thousands of results appear.. News releases show cryptocurrencies lack transparency. Bloomberg used Tether Ltd to check whether the US Commodity Futures Trading Commission has cash stock in January.. And all hell broke loose when Bitfinex reported that a subpoena had been sent.
The current status of the CFTC investigation into Tether’s bank account could not be determined.. CFTC spokesperson Erica Elliot Richardson declined to comment.
Unanswered Questions
To be sure, bank statements reviewed by Bloomberg are, for example, where the funds originated or are currently doesn’t show where they are. The disclosures are provided by someone who has access to the company’s records, and a government official confirms their authenticity.. Tether and Bitfinex, Wells Fargo & Co.. Stuart Hoegner, general counsel of Tether and Bitfinex, commented on their cash balances refuses to do. Regarding the CFTC investigation, Hoegner wrote in an email: Thank you.”