CEO Tether’s Twitter account was deleted after Bloomberg published an investigation into theirs USDT reserves
As you all know, Bloomberg has published an investigative report on stablecoin Tether (USDT) and the origin of the collateral cash flow afterwards. In it, journalist Zeke Faux delves into the complex relationship of the leading crypto stablecoin with financial regulators and partners. In the face of this incident, Tether has refuted the details of Bloomberg’s story about their reserve holdings.
Tether fires back against Bloomberg report, stated “stay tuned”
Faux has made numerous claims against Tether, including that their CFO Giancarlo Devasini used the company’s reserves to invest, which seems to contradict Tether’s public position that the holdings were fully backed at all times. Additionally, Faux alleges that Tether invested in Chinese companies and issued billions of dollars worth of crypto-backed loans. According to reports, he was only able to confirm one bank in the Bahamas is working directly with Tether.
“Tether still hasn’t disclosed where it’s keeping its money,” said Faux. “If Devasini is taking enough risk to earn even a 1% return on Tether’s entire reserves, that would give him and his partners a $690 million annual profit. But if those loans fail, even a small percentage of them, one Tether would become worth less than $1.”
And in response to this report, Tether deemed the report a tired attempt to sabotage the company based on innuendo and misinformation. They even challenged the reliability of the sources Faux cited. It’s not clear what happened, but the report concluded that Tether backed the coin with questionable assets, including Chinese debt.
And then the surprise was the Twitter account belonging to Tether CEO Jan Ludovicus van der Velde has been deleted, either by himself or by someone with access to the account. His last tweet, published on October 4, anticipated the content of Bloomberg’s article by several days.
Van der Velde’s account was previously located under the handle @urwhatuknow | Source: Archived page
Some have questioned whether the CEO exists or whether the name is merely a pseudonym. Although at least some media coverage of the CEO has been found, Van der Velde has largely not engaged with the public on matters involving Tether. It is possible that Van der Velde’s account was deleted to avoid conflict on Twitter.
While Tether’s harshest critics believe the company is on the verge of collapse, it’s unlikely that such a negative outcome will result from the Bloomberg disclosure, especially given that Tether has already existed. at many controversies in the past. The Tether incident is similar to the incidents that famous crypto companies have engaged in with the mainstream media. The most recent include Coinbase with the New York Times, Ripple and the SEC, and Binance suing Forbes for defamation for a report on their regulatory tactics.
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