Tether claims that the reports made by news media outlets were published "with little attention to current events or facts."
Tether, the entity behind one of the world's largest stablecoins, USDT, has publicized an extensive rebuttal to media claims that the company's reserves previously contained securities issued by Chinese companies.
Bloomberg, among other established media outlets, reported on June 16th that Tether had once held securities from state-owned corporations in China. The news was revealed based on documents published by the New York Attorney General's (NYAG) office.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
How to Avoid Crypto Taxes? (Legal Ways Explained)
The Chinese companies mentioned included well-known entities such as the Industrial & Commercial Bank of China, China Construction Bank Corp., and the Agricultural Bank of China.
Following the release of these reports, Tether promptly issued a response:
Ultimately Bloomberg, CoinDesk or any other media outlet’s decision to present this information to its readers was likely done in haste with little attention to current events or facts.
The firm stressed that the conduct displayed by the media outlets was something they couldn't stand behind and that their primary concern was the interest of their customers.
The firm also emphasized that the documents shared with the press were limited and outdated, with data over two years old and not indicative of the company's current state.
Furthermore, Tether made clear that its past holdings in Chinese commercial papers were liquid, with issuers who maintained stability. Tether added that these papers were used by some of the leading investment managers globally.
The Chinese banking-related commercial paper at issue was rated A1 or better.
Tether also stated that by the end of last year, its exposure to commercial paper holdings was reduced to zero. Moreover, the firm assured that no financial loss had been suffered due to any commercial paper, including those from Chinese firms.
While Tether acknowledges past exposure to Chinese securities, the company emphasizes that it has successfully phased out these investments and sustains no current ties, insisting on its commitment to the interests and protection of its customers.
On June 15th, following the Curve 3pool's imbalance, the USDT lost its dollar peg. Although the stablecoin eventually recovered, at the time of writing, it retailed for $0.9999.
