Bank statements suggest Tether has the billions it promises

posted 6 months ago
One of the biggest concerns in crypto is whether Tether is a scam, however bank statements reviewed by Bloomberg show Tether is backed by a huge pile of cash. The question is whether there really is $1 in the bank for every Tether, and while the documents don’t provide a complete accounting of Tether’s finances, they do offer more detail than has ever been made public.

To be sure, the bank statements reviewed by Bloomberg don’t show, for example, where the funds originated or where they are now. The statements were provided by someone with access to the company’s records, and a government official confirmed their veracity. Tether is used in at least 30% of all Bitcoin transactions that take place on exchanges, based on estimates by Blockspur, a blockchain data analysis firm.

Tether is also a quasi-bank because many crypto exchanges can’t secure or keep bank accounts. Unlike US dollars, which must be sent via correspondent banks, Tether can be conveyed anywhere in the world without the involvement of traditional financial institutions or governments. Notably, besides doubts over Tether’s cash stockpile, there’s a separate concern that it may be used to manipulate Bitcoin’s price.
Tags: bitcoin, news