Tether Calls Latest Bloomberg Hit Piece a ‘Tired Attempt to Undermine its Business’

October 09, 2021, 11:00 AM AEST - 1 week ago

Stablecoin issuer Tether is not so comfortable with a recent investigative report by Bloomberg, calling it a “tired attempt to undermine its business”. 

Where Are Tether’s Billions?

Bloomberg’s Zeke Faux is the author of the report, titled Anyone Seen Tether’s Billions?, which has put Tether in the spotlight by revealing the company has loaned billions of dollars to crypto companies, including crypto lender Celsius Network.

[Faux’s] article does nothing more than attempt to perpetuate a false and ageing story arc about Tether based on innuendo and misinformation, shared by disgruntled individuals with no involvement with or direct knowledge of the business’s operations. It’s another tired attempt to undermine a market leader whose track record of innovation, liquidity and success speaks for itself.

Tether statement

Celsius provides retailers with interest accounts. The crypto bank has been subject to scrutiny as US regulators consider these interest accounts unregistered securities.

Tether and its Involvement With Chinese Firms

It was also revealed that Tether is holding Chinese debt, lending billions of dollars to Chinese firms using bitcoin as collateral. One of these firms is Evergrande, reportedly close to defaulting on its debt payments. Tether has repeatedly denied all ties to the cash-strapped real estate group.

Chinese real-estate company Evergrande is facing a debt crisis after years of risky borrowing. Some analysts say it is the world’s most indebted real estate developer.

Last month, Crypto News Australia reported that Tether and its parent company, Bitfinex, had filed a petition to the Supreme Court of New York to block an information request submitted by CoinDesk.

A week ago, Bitfinex won a class-action lawsuit levelled against Tether, claiming it was a “clumsy attempt at a money grab”.

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