Update: Tether responds to Bloomberg article, manipulation claims

24 Nov, 2018
by David Borman
News
Update: Tether responds to Bloomberg article, manipulation claims

Chepicap recently reported that a Bloomberg article was claiming that Tether may have been used to manipulate and inflate last December's historic Bitcoin bull run. Now, in an interview with Cryptonews, Chief Compliance Officer Leonardo Real has fought back on that claim and some others that have been floating around.

Firstly Real addresses the insinuation that they manipulated the price of Bitcoin last year as being based upon not understanding how the market works:

"The story put forth by Bloomberg cites an unbacked, independent study which claims that, if USDT were to be unbacked (i.e. supply-driven and “pushed" onto traders as opposed to “pulled” via organic demand) it could indicate manipulation of the Bitcoin price. The entire study relies on the assumption that USDT is unbacked and therefore not sufficiently driven by trader demand. This is flawed, and claims which suggest that USDT transactions aren’t driven by demand when it is consistently in the top 2 of traded cryptocurrencies in the space with regards to volume, are simply ridiculous by now."

He goes onto respond to the allegations that their partner bank, Deltec, was supposedly caught up in some nefarious money laundering scheme. He submits these claims are false and perpetrated by those who would see Tether fail:

"This is more misinformation that is now targeting our bankers as part of an organized campaign against us. We are proud to be working with Deltec. Their compliance and operational standards are second to none. Their compliance functions have not been compromised and they are not involved in any case that could cast doubt on their integrity. Deltec has done nothing wrong in any of the allegations made against it of which we are aware."

When asked about the price drop that happened to Tether last month, Real refuses to comment. He then goes onto affirm that one Tether will always be equal to one US Dollar and that demand for the stablecoin is still quite high.

He ends by defending the, at times, heavy-handed moderation on the /r/Bitfinex and /r/Tether subreddits:

"We have set our subreddit spam filters to high on both /r/Bitfinex and /r/Tether to control a coordinated wave of unsubstantiated, ill-researched and, at times dangerous claims (e.g. leaking of private employee information), which made their way to our subreddits."

Overall, his responses are about what you would expect from Tether. It will ultimately be up to the authorities to decide if any wrongdoing has occurred, and each user to decide if they wish to use this stablecoin.

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Read more about: Tether (USDT)

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