In a recent response to circulating reports, Tether, a significant stablecoin issuer, addressed allegations that its reserves once encompassed securities from Chinese corporations. These assertions were presented by mainstream media including Bloomberg, citing documents provided by the New York Attorney General (NYAG).
The highlighted securities were allegedly backed by USDT and issued by prominent Chinese state-owned entities such as the Industrial and Commercial Bank of China, China Construction Bank, and the Agricultural Bank of China.
In the face of these reports, Tether quickly retaliated on the same day. In their statement, they questioned the intent and haste with which these media outlets shared the information.
They asserted, “Ultimately Bloomberg, CoinDesk or any other media outlet’s decision to present this information to its readers was likely done in haste with little attention to current events or facts.” Tether expressed disappointment in this perceived media behavior, clarifying their primary allegiance to their clientele.
Moreover, Tether elaborated that the presented documents do not accurately represent the company’s current standing. They claimed that the information shared with media channels is both outdated, being over two years old, and insufficiently comprehensive.
The company also took the opportunity to detail its past involvement with Chinese commercial papers, asserting that these investments were liquid and from stable issuers.
It stressed that these papers were also part of the portfolios of some of the globe’s top investment managers, boasting A1 or better ratings. Tether emphasized the solidity of its financial decisions by stating, “The Chinese banking-related commercial paper at issue was rated A1 or better.”
Tether further revealed that it severed its ties with commercial paper holdings last year, reducing its exposure to zero. Maintaining their stance of strong financial conduct, Tether reassured stakeholders that it did not suffer any losses from any commercial paper, including those issued by Chinese firms. The company appears to be eager to clarify its position amid the unfolding events and remains steadfast in defending its strategic financial decisions.
Other Stories:
Hong Kong warns banks against placing ‘undue burden’ on crypto exchanges
Mark Cuban clashes with the SEC over crypto regulation
Sturdy Finance reinstates stable coin market after exploit
