USDT Are Backed by USD, Tether Says

Chief Compliance Officer of Tether Ltd. also said the company's assets always exceeded financial liabilities
16 October 2018   620

Chief Compliance Officer of Tether Ltd. Leonardo Real stated that all USDT tokens are secured by fiat reserves, and the company's assets always exceeded financial liabilities. It is reported by CoinDesk, citing representatives of the issuer.

Tether is the leading provider of tokenized fiat currencies and is listed on many exchanges worldwide. We would like to reiterate that although markets have shown temporary fluctuations in price, all USDT in circulation are sufficiently backed by U.S. dollars (USD) and that assets have always exceeded liabilities. In June 2018, a report from Freeh Sporkin & Sullivan, LLP (FSS), based on a random date balance inspection and a full review of relevant documentation of bank accounts, confirmed that all Tethers in circulation as of that date were indeed fully backed by USD reserves.
 

Leonardo Real

Chief Compliance Officer, Tether Ltd

Reel also stressed that the report of the law firm Freeh Sporkin & Sullivan, LLP (FSS) of June said that all tokens are provided with dollars in bank accounts.

However, FSS indicated in the report that the procedures performed by it “are not intended to provide guarantees and should not be confused with an audit”, since the work was carried out “without observing auditing and accounting standards”.

On Monday, October 15, the USDT price dropped to a 18-month low at $ 0.92. At the time of writing, the price has recovered and is about $ 0.97.

Bitfinex to Pay Tether First $100M Of $700M Debt

In late April, the NY Prosecutor General’s Office charged Bitfinex with the fact that, having suffered a loss of $ 850M, it took money from affilated Tether
03 July 2019   990

Bitfinex Cryptocurrency Exchange announced the beginning of the repayment of debt to its affiliated company Tether. As part of the process, Bitfinex transferred the first $ 100 million to Tether’s account.

In late April, the New York Prosecutor General’s Office charged Bitfinex with the fact that, having suffered a loss of $ 850 million, it concealed this fact, partially using the funds of its affiliate issuer of stablecoin Tether to cover the damage.

Later it turned out that these funds were frozen in the bank accounts of the Panamanian processing service Crypto Capital. Nevertheless, the exchange assured users that it is actively cooperating with the relevant departments to restore access to money.

In May, as part of the ongoing proceedings, it was confirmed that Bitfinex borrowed $ 700 million from Tether. Now the exchange has begun to return these funds.

Bitfinex made this payment in fiat wired to Tether’s bank account. This amount was not yet due to be paid to Tether under the facility, but Bitfinex has made the prepayment based upon its financial position at the end of the second quarter of 2019.

Also on July 1st, Bitfinex fully prepaid all interest accrued under the loan facility to Tether up to the end of day on June 30, 2019, also in fiat.
 

Bitfinex Team

At the same time, Bitfinex and Tether do not stop trying to stop the proceedings initiated against them, insisting that the authorities in New York do not have the appropriate authority or sufficient evidence against them.

According to CoinDesk, by July 8, the prosecutor's office may protest the position of the defendants. If this happens, Bitfinex and Tether will have time until July 22 to submit a response, after which the parties will have to meet again in court on July 29.