Tether Denies Claims of Asian Commercial Paper Backing, Exposure to Three Arrows Capital

Tether described certain rumors spreading to this effect as "completely false and likely spread to induce further panic."

AccessTimeIconJun 15, 2022 at 8:32 a.m. UTC
Updated Jun 15, 2022 at 7:23 p.m. UTC

Jamie Crawley is a CoinDesk news reporter based in London.

Stablecoin issuer Tether has denied claims that its commercial paper portfolio is 85% backed by Chinese or Asian commercial paper.

  • Tether described certain rumors spreading to this effect as "completely false and likely spread to induce further panic in order to generate additional profits from an already stressed market," in an announcement Wednesday.
  • The issuer of USDT, the world's most widely used stablecoin, added that Celsius' position has been liquidated following the crypto lender's freezing of account withdrawals Monday in response to the sharp downturn across the cryptocurrency market.
  • An investigation last year found that Tether had loaned $1 billion to Celsius, using bitcoin (BTC) as collateral.
  • Tether also denied rumors that it has lending exposure to Three Arrows Capital, the crypto hedge fund that was one of the biggest investors in the Terra blockchain. The fund now faces possible insolvency after incurring $400 million in liquidations, according to a report.
  • The composition of USDT's reserves has long since been an area of concern in the crypto market, with questions specifically surrounding the nebulous "commercial paper." In its latest attestation of its deposits as of the end of March, Tether reported that $20.1 billion of its holdings were in commercial paper, down from $30.8 billion in June last year.
  • Tether's chief technology officer added via Twitter that this figure would be reduced further to $8.4 billion by the end of this month.


DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Jamie Crawley is a CoinDesk news reporter based in London.

CoinDesk - Unknown

Jamie Crawley is a CoinDesk news reporter based in London.

Trending

1
CoinDesk - Unknown
Former JPMorgan Banker Samir Shah Becomes COO at Pantera Capital

Shah joins Pantera after 12 years at JPMorgan spanning roles in sales, strategy and digital.

CoinDesk - Unknown
2
CoinDesk - Unknown
First Mover Asia: Bitcoin Rebounds Past $20K; China’s Blockchain Revolution Is Missing On-Chain Data

Ether and most other major altcoins regain ground they'd lost in last week's downturn; China companies seem unconvinced by blockchain technology.

CoinDesk - Unknown
3
CoinDesk - Unknown
NFT Platforms Should Be Caught by EU Money-Laundering Overhaul, Lawmakers Say

Unhosted wallets and decentralized finance were left largely unscathed by two landmark crypto laws agreed to last week, but left-wing lawmakers may seek another go as they discuss dirty-money rules.

CoinDesk - Unknown
4
CoinDesk - Unknown
Bitcoin se recupera y supera los $19K; Nomura advierte de una recesión en EE. UU. y Reino Unido

Nomura escribió acerca de una recesión en la eurozona, el Reino Unido y Asia Pacífico, lo que podría influir en los precios de las criptomonedas.

CoinDesk - Unknown