Controversy-ridden stablecoin Tether fought back on allegations that it did not have enough fiat holdings to back up its Tether tokens (USDT) in circulation as it claims, producing a banking report Thursday allegedly displaying the total balance.
Tether Limited shared details of its banking relationship with Deltec in a blog post, claiming that the 72-year-old financial institution ”came after their due diligence review of our company”, saying this included an analysis of Tether’s compliance processes, policies and background checks of shareholders.
Most importantly, in this case, it claimed that Deltec checked its ability to maintain the USD peg at all times.
A letter dated 1 November appearing to come from the bank reads: “the portfolio cash value of your account with our bank was USD 1,831,322,828.”
Several issues have arisen in regards to this letter, however. For one, there is no specific name attached to the letter in regards to any employee at Deltec, while the signature is merely a curved line. And additionally, the data shared in the letter was provided ”without liability” from the bank or any individual connected to it, with the caveat that it reflected ”the information currently in our possession”.
Tether says that the bank will consistently review the company’s funds in relation to its USD peg.
In an email to CoinDesk, Deltec declined to comment or even acknowledge its banking relationship with Tether, adding: ”However, we can state that Deltec conducts all client relationships in a manner that is fully compliant with all applicable banking regulations, and consistent with our internal policies with respect to safety and sound risk management.”
Amid criticism of Tether’s inability to provide USD based on its tokens as the company claims it can, USDT 930 million have been removed from circulation since 14th of November.
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