Over time, Tether has grown into a multibillion-dollar currency in the cryptocurrency market. Critics have been expressing concern about the currency. They claim Tether’s selling point is the fact that it’s pegged to the dollar. Thus, it is not backed by a large amount of cash.
No Course For Panic
The review of bank statements done by Bloomberg revealed otherwise. This suggested that the fears were unwarranted. Some statements revealed details about the cash held in Tether Limited’s accounts.
Tether and Bitfinex, are run by the same executives. Their bank statements revealed how money flows amongst the both of them. This was after Bitfinex became the only way to buy or sell Tether last year.
At some point, there were fears about Tether’s authenticity. This led to people searching Google for “Is Tether a scam?” The agitation was due to Bloomberg reporting to the U.S. Commodity Futures Trading Commission (CFTC).
It reported that subpoenas were issued to Tether and Bitfinex to check whether there was a cash stockpile. Although, CFTC spokeswoman Erica Elliot Richardson, refused to make any comment on the investigation.
Is Tether Clean?
In all fairness, the review of bank statements by Bloomberg doesn’t reveal some details. It doesn’t show where the funds originated from nor where they exist in. An anonymous member of the company provided the statements. Although, it’s believed that the individual had access to the company’s records. However, the government confirms that they were clean.
Still on the issue of the cash balance. General counsel for Tether and Bitfinex, Stuart Hoegner refused to comment on the cash balances. But, he commented on the CFTC inquiry. To him, the company takes its legal and compliance obligations seriously. They are not also in the position to comment on the discussions of subpoenas or any related legal incidents, he added.
Value of the Cryptocurrency Affirmed
There might have been serious implications if no cash involvement. But, currently, Tether is worth about $1.9 billion, and it’s the sixth most valuable cryptocurrency. According to Blockspur, Tether shows involvement in about 30 percent of all Bitcoin transactions.