• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
Nairametrics
No Result
View All Result
Home Markets Cryptos

Tether hits back after damning Bloomberg report

Ajibola Akamo by Ajibola Akamo
October 8, 2021
in Cryptos
Tether hits back after damning Bloomberg report
Share on FacebookShare on TwitterShare on Linkedin

After a Bloomberg report that accused Tether of not having enough reserves to back its stablecoin issuance and accusing Tether’s Chief Financial Officer, Giancarlo Devasini of using the company’s reserves to make investments which is in direct contradiction of Tether’s public position that its stablecoin is fully backed at all times, Tether has come out to refute these allegations, stating that the Bloomberg article is filled with “outlandish anecdotes.”

The Bloomberg report written by Zeke Faux also accused Tether of investing in Chinese firms and issued crypto-backed loans, “worth billions of dollars.” The reporter was only able to confirm one bank in the Bahamas was working directly with Tether.

Faux further stated that “Tether still hasn’t disclosed where it’s keeping its money. If Devasini is taking enough risk to earn even a 1% return on Tether’s entire reserves, that would give him and his partners a $690 million annual profit. But if those loans fail, even a small percentage of them, one Tether would become worth less than $1.”

RelatedStories

Analyst knocks EU MICA laws, says Spat with Tether (USDT) spells doom for the Crypto Industry  

Analyst knocks EU MICA laws, says Spat with Tether (USDT) spells doom for the Crypto Industry  

January 2, 2025
Tether’s USDT faces possible delisting in Europe ahead of MiCA implementation 

Tether’s USDT faces possible delisting in Europe ahead of MiCA implementation 

December 29, 2024

Tether’s response

Tether immediately responded to the article in a blogpost refuting all the allegations made by the Bloomberg reporter. It stated, “The Bloomberg BusinessWeek piece published today is a one-act play the industry has seen many times before, taking snippets of old news from various places and dubious sources, and making it fit a pre-packaged and pre-determined narrative.

“This article does nothing more than attempt to perpetuate a false and aging story arc about Tether based on innuendo and misinformation, shared by disgruntled individuals with no involvement with or direct knowledge of the business’s operations. It’s another tired attempt to undermine a market leader whose track record of innovation, liquidity, and success speaks for itself.”

Tether, in the blogpost also accused Zeke Faux of being biased and relying on the testimony of a the former head of Noble Bank, whom Tether fired as its banker.

“The reporter refuses to let the facts get in the way of the story he wants to tell, instead relying on John Betts, the former head of Noble Bank, whom Tether fired as its banker. In an ongoing lawsuit, Betts has also been accused of engaging in egregious and wasteful self-dealing and seeking to enrich himself at Noble’s expense. It shows a complete lack of diligent research and is filled with outlandish anecdotes that are not geared toward ethical reporting but character assassination. This story works hard to discredit Giancarlo Devasini and Tether’s executives with sources that are far from credible. Following the last Bloomberg story, Tether’s CFO has in fact received many messages from those inspired by his story, coming from a medical background to revolutionize the financial industry,” Tether said.

Tether further stated that their goal is to work for the underrepresented and working towards a more financially inclusive world though its agenda may, “threaten the establishment of traditional financial systems.”

The Tether concluded by stating, “Here are the facts: All Tether tokens are fully backed, as we have consistently demonstrated. The company has taken a leadership position in transparency, providing quarterly assurance attestations (as recently as the June 30, 2021 target date) confirming that all Tether tokens are fully backed. And these attestations and statements also confirm the vast majority of the commercial paper held by Tether is in A-2 and above rated issuers.”

According to the Bloomberg report, if these allegations against Tether are true, “Tether is a Ponzi scheme, it would be larger than Bernie Madoff’s.”

Tether’s stablecoin USDT is still trading $1 at the time of this reporting.

Tags: Giancarlo DevasiniTetherZeke Faux
Ajibola Akamo

Ajibola Akamo

Ajibola Akamo is an Investment Analyst, Financial Analyst, Economist and Accountant. You may contact him via his email ajibolaakamo@yahoo.com

Related Posts

Analyst knocks EU MICA laws, says Spat with Tether (USDT) spells doom for the Crypto Industry  
Cryptos

Analyst knocks EU MICA laws, says Spat with Tether (USDT) spells doom for the Crypto Industry  

January 2, 2025
Tether’s USDT faces possible delisting in Europe ahead of MiCA implementation 
Cryptos

Tether’s USDT faces possible delisting in Europe ahead of MiCA implementation 

December 29, 2024
XRP sinks to $1.10 after three-year highs, whales take profit
Cryptos

XRP surges by 64.3% becoming the third-largest crypto asset by market capitalization 

December 2, 2024
Industry-leading stablecoin Tether mints $3 billion USDT in 24 hours 
Cryptos

Industry-leading stablecoin Tether mints $3 billion USDT in 24 hours 

November 25, 2024
US files complaints to seize $2.7 million assets stolen by North Korea’s Lazarus group  
Cryptos

US files complaints to seize $2.7 million assets stolen by North Korea’s Lazarus group  

October 7, 2024
Tether
Cryptos

Tether Custodian CEO explains importance of Stablecoins and how they impact US dollar

April 11, 2024
Next Post
The appetite for foreign goods is destroying the Naira-CBN, Nigeria's high Inflation would reduce value of Naira- CBN 

We need proper understanding of Fintech and their risks - CBN

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Emple
nlng
first bank
Zenth Bank








DUNS

Recent News

  • Tinubu seeks swift action on ECOWAS Standby Force as insecurity escalates in West Africa 
  • Global oil price may surge past $150 per barrel as Iran’s parliament approves closure of Strait of Hormuz 
  • President Trump’s visa restrictions threaten 16 U.S. colleges depedent on international students 

Follow us on social media:

Recent News

Tinubu seeks swift action on ECOWAS Standby Force as insecurity escalates in West Africa 

Tinubu seeks swift action on ECOWAS Standby Force as insecurity escalates in West Africa 

June 22, 2025
Latest crude oil price drop threatens Nigeria’s revenue and naira stability 

Global oil price may surge past $150 per barrel as Iran’s parliament approves closure of Strait of Hormuz 

June 22, 2025
  • iOS App
  • Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer
  • Copyright Infringement

© 2025 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Social Media Auto Publish Powered By : XYZScripts.com
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Login
  • Sign Up

© 2025 Nairametrics