Tether, the issuer of one of the most requested stablecoins (USDT), has denied rumors regarding the portfolio of commercial papers that make up USDT’s insurance reserves. Tether also said there was no exposure to the CeDeFi platform Celsius and crypto hedge fund Three Arrows Capital (3AC).
Tether denies accusations about its reserves, Celsius, and Three Arrows Capital connections
According to rumors later denied by the company, Tether’s commercial paper portfolio includes nearly 90% of other Chinese and Asian stocks and is traded at a 30% discount due to market conditions. Tether and its spokesman, Paolo Ardoino, denied the rumors, calling them an attempt to create fear, uncertainty, and bankruptcy.
Ardoino also claims that Tether has reduced its reserves in a commercial paper by nearly 50% since March 31, to just $8.4 billion as of June. He also claims that the company’s showing ratio in commercial paper will gradually decrease to zero in future periods.
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It’s insane how much FUD is spread by hedge funds interested to cause was further hell to make some extra bucks.Pay attention and always ask yourself: who benefits from this
— Paolo Ardoino (@paoloardoino) June 15, 2022
As for Celsius, it was stated that, as with any other borrower, Tether was overcollateralized and, therefore, the position of the now-infamous CeDeFi platform was liquidated, with no loss to Tether itself. Nevertheless, despite the absence of any credit relationship with Celsius, Tether still has investments in the platform made with its funds.
With Three Arrows Capital, the situation, according to Tether, is even simpler because, following the latter, no debt obligations are provided for it. Therefore, these rumors are also incorrect. Recall that the Three Arrows Capital fund faces the risk of massive liquidation of its ETH positions due to a possible attack.
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