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Tether lends billions of USDT under BTC pledge

Tether ... Tether is a "financial black hole" in the crypto market on the one hand, on the other hand it is "fuel" for the crypto market, and in profile a "time bomb", in full-face - "financial fraud of pure water". A recent Bloomberg investigation revealed that Tether's stabelcoin loaned $1 billion to cryptocurrency lending service Celsius Network and this loan was secured by Celsius Network's BTC stock.

Alex Mashinsky, CEO of Celsius Network, said that his Celsius Network pays Tether interest at a rate of 5-6% per annum. According to Bloomberg, Tether's reserves contain multibillion-dollar debt held by large Chinese companies. Tether itself has previously denied claims that it holds promissory notes of debt-ridden Chinese real estate developer Evergrande and still doesn't disclose what is included in Tether reserves (what assets, stocks, bonds):

"Chinese investments and bitcoin-backed loans to Tether could potentially be significant," Bloomberg writes. - If these loans become irredeemable, even a small percentage of them, one Tether will be worth less than $1, and investors will have an incentive to get out into real money, which could cause them to start running out quickly."

Tether has published a rebuttal to the Bloomberg story on their official website, stating that it is based on scraps of old news and dubious sources, all lies and certainly not the truth. According to them, Tether is the most transparent financial issuer in human history, and any questioning of their reserves is a 11 deadly human sin and punishable by firing squad:

"Here are the facts: All Tether tokens are fully secured, as we consistently demonstrate. The company leads the way with transparency by providing quarterly assurance attestations that verify that all Tether tokens are fully secured. In addition, these attestations and statements confirm that the vast majority of Tether's commercial paper is rated A-2 or higher."

For background on Tether

Tether is what has become known in financial circles as a stabelcoin - a stable coin because one Tether is supposed to be backed by $1. But it's actually more like a bank. The company that issues the digital currency, Tether Holdings Ltd., takes dollars from people who want to trade the cryptocurrency and in return credits their digital wallets with an equal amount of Tether. Once people receive Tether, they can send them to cryptocurrency exchanges and use them to bet on the price of bitcoins, ether, or any of thousands of other coins. And, at least in theory, Tether Holdings holds the dollars to give back to anyone who wants to send their tokens and get their money back. The convoluted mechanism became popular because real banks didn't want to deal with cryptocurrency companies, especially foreign ones.

Advice to read:
- U.S. DOJ: Tether is facing criminal charges for bank fraud in the U.S.
- Tether: USDT issue for Alameda Research/Binance and Cumberland
- Binance, FTX, Tether criminal cartel
- Bitcoin's end: Tether, Binance and the white swans that could bring it all down
- Canadian authorities have banned regulated crypto exchanges from using USDT (Tether)шаблоны для dle 11.2

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