USDT issuer publishes official statement condemning false rumors
Today, June 15th, the most sought-after stablecoins[यूएसडीटी]Tether, the issuer of the USDT, issued a denial of rumors about the portfolio of commercial papers that make up the USDT’s coverage reserve. Tether also said that there was no exposure to CeDeFi platform Celsius and crypto hedge fund Three Arrows Capital (3AC).
According to the rumours, which the company later denied, Tether’s commercial paper portfolio consisted of roughly 90% Chinese and other Asian securities and traded at a 30% discount due to market conditions. Tether and its spokesman Paolo Ardoino have denied the rumours, calling them fear, uncertainty and an attempt to create a dump.
Ardoino also said that Tether has depleted nearly 50% of its reserves in commercial paper since March 31, with only $8.4 billion remaining as of the end of June. He also said that the company’s exposure to commercial paper will gradually come down to zero in future periods.
It’s crazy how much FUD is spread by hedge funds, which was just hell to make a few extra bucks.
Pay attention and always ask yourself: who benefits from this— Paolo Ardoino (@paoloardoino) 15 June 2022
As for Celsius, it was stated that as with any other borrower, Tether was overcollateralized and, therefore, the status of the now infamous CeDeFi platform was terminated, with no losses to Tether. Nevertheless, Tether still has investments in the platform created from its own funds, despite the absence of any credit relationship with Celsius.
With Three Arrows Capital, according to Tether, the situation is even simpler because, according to the latter, it was not granted any debt obligations. Therefore, even these rumors are clearly false. Remember that Three Arrows Capital Fund faces the risk of large-scale liquidation of its ETH positions as a result of a potential attack.