The digital currency ecosystem encountered turbulence today with the depegging of the industry’s largest stablecoin, Tether (USDT), which has fallen to $0.9991 at the time of writing. This depegging is attributed to the loan saga on the DeFi platform Curve, but new details are emerging as Tether Holdings Ltd has recently issued a statement with new revelations about the entire ordeal.
Tether’s major concern is that the Office of the New York Attorney General (NYAG) provided materials relating to the first of its quarterly reports to Coindesk, who had requested them shortly after Tether and NYAG reached their settlement agreement in 2021. Tether claims that it dropped its opposition to Coindesk to prevent the use of sensitive commercial information that could potentially be exploited by malicious actors.
Interestingly, some of the documents shared with Coindesk include statements from Tether’s banks showing the full existence of the company’s reserves, how the firm has been approaching its asset management obligations, and details about short-term investments and diversification. In a proactive move, Tether states that the financial transactions detailed in these documents do not reflect the firm’s current realities and urges Coindesk not to reveal any past or current information about its customers.
It is worth noting that Coindesk has been essential in the crypto ecosystem when it comes to uncovering hidden financial details about major companies within the industry. Last year, the news outlet reported on the financial and transactional impropriety of Alameda Research, the trading firm founded by FTX co-founder Sam Bankman-Fried, which subsequently led to FTX’s collapse. A similar fear now appears to be brewing in the industry concerning Tether.
Tether, despite constantly facing skepticism and uncertainties, has managed to survive most attacks against it. However, it remains to be seen whether or not the stablecoin issuer will endure the potential implications of the released documents. Should these details prove to be controversial, the negative sentiment surrounding Tether may just be beginning.
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Source: Coingape
