Tether Allegedly Selling Company Commercial Securities, This Is The Response Of USDT Stablecoin Issuers!

JAKARTA – Recently, the issuer of stablecoin USDT, Tether, denied allegations that it sold the company's commercial paper at a discount of 30 percent.

Rumors circulated that Chinese or Asian newspapers owned 85 percent of Tether's commercial paper portfolio. The USDT issuer released an official statement regarding the allegations on June 15 yesterday.

“These rumors are completely false and likely spread to trigger further panic to generate additional profits from an already depressed market. Tether condemns such efforts which often get ordinary users the biggest hit, while multiple coordinated funds increase their profits," Tether said.

According to the press release, the company reiterated that its current portfolio of commercial newspapers has been reduced to 11 billion and will further be reduced to 8.4 billion by the end of this month.

“Tether can report that its current commercial paper portfolio has been further reduced to 11 billion (from 20 billion at the end of Q1 2022) and will be 8.4 billion at the end of June. 2022. It will gradually decrease to zero without incurring any losses. All securities will expire and will be placed in the US Treasury with short maturities.”

According to a CryptoPotato report, all of these declines will occur “without a repeat of the losses.” After that, the expired securities will be included in US Treasuries with a short maturity. Another thing revealed by the press release of Tether is that the company has no relation to Celsius.

Tether currently has no exposure to Celsius apart from a small investment made of Tether's equity in the company. In addition, the stablecoin issuer also denied allegations that Tether had loan exposure to hedge fund company Three Arrows Capital.

As is well known, Three Arrows Capital suffered heavy losses from its investment in Terra. The Singapore-based company is also reported to have made a massive sale of its Ethereum cryptocurrency to pay off debts to the Aave platform.