While The Wall Street Journal argued that Tether used forged documents and front companies, the USDT issuing firm strongly denied the allegations, accusing the journal of spreading FUD.
The Wall Street Journal accuses Tether of using forged documents
This week, our colleagues at the Wall Street Journal alleged that Tether, the company issuing the stablecoin USDT, would have used falsified documents and front companies.
The newspaper claims that at the end of 2018, the companies of the group were struggling stay connected to the banking systemand would thus have called on “obscure intermediariesto work around the problem.
Thus, according to an email that would have been seen by the Wall Street Journal, a Tether trader based in China would have established “fake sales invoices and fake contracts for every deposit and withdrawal“. Said email would also have indicated that it was then necessary to cease these practices deemed too risky.
The conditional is important, because these accusations lack concrete details and have moreover been disputed by Tether.
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Tether totally denies these remarks
Faced with these remarks, Tether reacted in a press release, accusing The Wall Street Journal of spreading fear, uncertainty and doubt (FUD):
“The Wall Street Journal’s report on the long-ago, stale claims is totally inaccurate and misleading. Bitfinex and Tether have world-class compliance programs and adhere to applicable legal requirements for anti-money laundering, anti-money laundering, [KYC] and countering the financing of terrorism. »
During a bear market, it is common to see major players in the ecosystem be the subject of various rumorswhether they end up being true or not.
Regarding Tether, the company currently issues five different stablecoins:
- USDT for the dollar;
- The EURT for the euro;
- CNHT for the yuan;
- MXNT for the Mexican peso;
- XAUT for gold.
The company’s website highlights the quantity in circulation on the various blockchains of each of these stablecoins, and the reserves guaranteeing the collateralization of these assets. are audited quarterly by BDO Italia.
If Tether has indeed been singled out on several occasions by the courts for irregularities, the purpose of this article is not to know who to believe or not. Indeed, it is the responsibility of each investor to diversify its investments, including for stablecoinsand to carry out research for each project in order to form their own opinion.
👉 On the same subject – End of BUSD: Tether earns a billion dollars on USDT
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Sources: The Wall Street Journal, Tether
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