- NY Attorney General reveals Tether’s alleged Chinese securities involvement, despite company denials.
- Settlement in 2021 saw Tether paying the NY Attorney General an $18.5 million penalty.
- Tether aims to rebuild trust by removing commercial paper from its stablecoin, USDT.
According to Bloomberg, recently disclosed documents from the New York Attorney General’s office shed light on Tether’s involvement with Chinese securities, contradicting the company’s persistent denial of such claims. Renowned corporations like China Construction Bank Corp. and Agricultural Bank of China Ltd issued these securities.
Rumors surrounding Tether’s use of Chinese securities to back its stablecoin had been circulating for some time. However, Tether remained tight-lipped about the allegations, adamantly refuting any connection to commercial paper from the troubled Chinese real estate giant, Evergrande back in September 2021.
Last July, Tether asserted that it had no holdings of Chinese commercial paper at that moment, but it conveniently avoided discussing its past transactions. Moreover, the company criticized its detractors, accusing them of spreading false information and dismissing their claims as baseless.
According to the report, releasing these revealing documents was made possible through a freedom of information request. They form part of the extensive data the New York Attorney General gathered during its comprehensive investigation into Tether, culminating in a settlement in 2021 and an $18.5 million penalty.
Presently, Tether insists that it has wholly removed commercial paper from its stablecoin, USDT, to restore transparency and rebuild user trust.
Today, the price of Tether (USDT) stands at $0.999628, with a 24-hour trading volume reaching a staggering $20,278,367,828.68, as per CoinGecko. Over the past 24 hours, the price has increased by 0.20% while experiencing a slight decline of -0.01% in the past week. With an impressive circulating supply of $84 billion, Tether’s market cap is currently valued at $83,482,742,633.
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