Bloomberg Finds That Tether Could Be Backed by Sufficient USD Collaterals

[PRIBO247]

Tether’s Bank Statements Suggest USD Sufficiency
According to the report, Bloomberg reviewed the bank
statements of four separate months which depicted that the
amount of USDT coins in circulation was in accordance with
Tether LTD’s bank account deposits.

In particular, a statement from January 31, 2018, showed that
the company held $2.2 billion in an account at Noble Bank Ltd.
in Puerto Rico.
During the same period, 2.195 (~2.2 billion) USDTs existed,
based on data extracted by Coinmarketcap.com.
Similarly, the results from figures examined during September
and October 2017, respectively, showed a proportional balance
between the USDT supply and collaterals in USD.
While the research was not based on Tether’s complete
auditing data, the information provided by Tether Limited is the
most detailed up to date.

Tether Under the Spotlight of Authorities
Tether Limited has been surrounded by controversy as it has
repeatedly failed to provide transparent auditing data and has
been operating in opacity.
Tether is being used for 30% of all Bitcoin transactions across
cryptocurrency exchanges, Blockspur estimates.
It has previously been accused of being used to manipulate the
price of Bitcoin through Bitfinex, a cryptocurrency exchange
also owned by the executives of Tether Limited.

The claims about the uncertainty around Tether were further
extended when the CFTC (Commodity Futures Trading
Commission) issued subpoenas to both companies in respect
to the collateralized reserves in USD and the dubious
connection between them.

Furthermore, the existence of adequate USD deposits by Tether
has been extensively questioned by the crypto community
before, as Bitfinex offers on-margin trading.
As from early 2017, only Bitfinex was allowed to acquire Tether
coins from the issuer and investors could only trade USDT
through Bitfinex exclusively.

Noble’s bank statements confirm that each time Bitfinex sent
digital coins to Tether Ltd., an equivalent amount in US dollars
was then released towards Bitfinex.
The issuance and movement of every Tether coin are recorded
on the Omni layer of Bitcoin’s blockchain .
Therefore, this created an auditing trail that Noble bank used to
verify the money movements between Tether Limited and
Bitfinex.

These blockchain transactions were also scrutinized by the
CFTC for six months, during the investigation that followed
after the issuance of subpoenas to Bitfinex and Tether.

“On July 6, Bitfinex sent 100 million digital coins to
Tether Ltd., according to the blockchain. The same
day, Tether paid Bitfinex $100 million, a Noble bank
statement shows. On July 20, $50 million was
exchanged for 50 million Tethers. On July 24, it was
$100 million for 100 million coins.”

Bloomberg to Play the Role of an Auditor?
Without disclosing more details, Bloomberg said that the
aforementioned statements were provided by a person with
access to the company’s records, while their veracity was
confirmed by a governmental official.
It also underlines that “the bank statements reviewed by
Bloomberg don’t show, for example, where the funds
originated or where they are now .”

The news coming from Bloomberg’s report is surely positive
for Tether Limited, but as the data examined are not officially
audited by an accredited firm, conclusions may not be as safe.

https://blokt.com/news/