Tether, the issuer of the market’s first stablecoin, USDT, said it was not exposed either Global capital genesis nor to Gemini Earn. Some, however, wonder how a company the size of Tether managed to escape all the negative events that rocked the crypto space this year.
The company said in a statement that “business is continuing as usual”:
“With the recent information that emerged today regarding Genesis, Tether would like to confirm that they have absolutely no exposure to Genesis or Gemini Earn.”
According to the statement, the USDT tokens are 100% backed by its reserves, and the assets backing these reserves exceed the liabilities. The Company’s portfolio includes cash, cash equivalents and US Treasury bills.
The company also said:
“It is important at a time like this to emphasize that these reserves have proven themselves by showing continued resilience during the ‘black swan’ events that have characterized the market this year.”
As noted, the cryptocurrency lending division of Genesis trade, Global capital genesisto which it belongs Digital currency group (DCG), the parent company of Grayscale Investmentsas well as cryptocurrency exchange Twins would be among the latest victims of the bankruptcy of FTP extension.
Genesis announced Wednesday that it was suspending repayments on its loan product and stopping issuance of new loans. It said Genesis’ trading and custodial business was unaffected.
Shortly thereafter, Gemini also announced it was stopping refunds on its product. Gemini Earn. Genesis provides services to Gemini. “This action does not impact other Gemini products and services,” the company said.
Some question Tether’s claims, arguing that given the scale of events around Land and FTX, it’s almost impossible not to have been hit, for exampleAdam Cochrancryptocurrency researcher and venture capital fund partner Cinneamhain Ventures. Cochran has tweeted that many companies said they have no exposure to distressed companies like FTX, Land, Celsius, Capital of the three arrowsand more recently BlockFiHowever :
“It’s almost mathematically impossible for that to be true,” Cochran said.
other support that all those companies claiming not to be affected have in fact been indirectly exposed – “which amounts to being exposed”.
However, many people argue that their companies are indeed among those “impossible” cases, such as Vlad Andreifounder and managing partner ofAlbaron Venutersan investment firm specializing in companies and projects related to fintech, blockchain, decentralization, digital currencies and crypto-assets.
As reported, Tether froze $46.5 million worth of USDT last week, apparently at the request of law enforcement agencies. USDT was held on the Tron blockchain in a wallet owned by the exchange.
At the time of the deal, Tether had already said it had “absolutely no credit” with FTX or its parent company. Research Alamedaand that he is “absolutely not exposed” to these two companies.
Tether may also face some legal issues. the United States Department of Justice It has reportedly reopened an investigation into whether its executives committed bank fraud in the early days of the stablecoin’s creation. But the company denied the reports: “Bloomberg launders old news that isn’t real. This is another example of incompetence and their inability to separate fact from falsehood.”
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