CRYPTO

Teether reverses reports that it is using reserves for investment and creating crypto-backed making

Tether (USDT), the largest stable currency provider in market capitalization, has denied details of Bloomberg’s reserve holdings.

In a report on Thursday, Bloomberg journalist Jake Fox made a number of claims against Teether, including chief financial officer Giancarlo Devasini’s use of the company’s reserves, which appears to contradict Tether’s public position. In addition, Fox alleges that Teether has invested in Chinese companies and issued “billions of dollars worth of crypto-backed loans.” He was only able to confirm that a bank in the Bahamas was working directly with Teether, the report said.

“Tether hasn’t yet revealed where he’s putting his money,” Fox said. “If Devasini had taken enough risk to earn a 1% return on Tether’s entire reserves, it would have given her and her partners an annual profit of $ 690 million. But if those loans fail, even a small percentage of them, the cost of a teaser will be less than 1.

Tither called the report a “tired attempt to harm the company based on inaccurate and misleading information.” With quotes from his quarterly confirmation report.

In February, Tether and Bitfinex agreed to pay New York State 18 18.5 million in compensation and to provide a detailed report on its finances as part of an agreement with the New York Attorney General’s Office – the latest audit was filed with the data released by June 30. Authorities claimed that Tether misrepresented his degree in that his USDT tokens were backed by fiat collateral.

Related: Stablecoin Verification-Selection: USDT stands next to ‘commercial paper’ teaser

Many have speculated in the Bloomberg report that Evergrand Group, China’s second-largest property developer, will pay ০০ 1 billion in default. According to Fox, Tether refused to accept any debt from Evergrand but did not confirm whether other Chinese companies had commercial documents.