Copy link
Increase text size
Decrease text size
Link copied

Tether fires back at bitcoin price manipulation allegations, claims USDT is fully backed by USD reserves

Tether is disputing the claims of a study accusing the stablecoin of manipulating Bitcoin’s price, firing back that researchers are cherry-picking data to suit their agenda.

Image via Screenshot of

Mon, 11 Nov 2019, 06:58 am UTC

The discussion surrounding Tether’s questionable practices are heating up once again following the publication of a study accusing the stablecoin of Bitcoin manipulation. In a paper released by researchers John Griffin and Amin Shams, the study contends that Tether colluded with Bitfinex to spark the bull market in 2017 that saw Bitcoin’s price soar to $20,000.

In response to the accusations, Tether said Griffin and Shams’ paper is inconclusive, lacks relevant data, and the information in the study has been cherry-picked to suit the researchers’ agenda. Tether added that the paper is a “watered-down” version of a study that was first published last year, going so far as calling the study as “embarrassing,” CoinDesk reported.

Aside from criticizing the paper, Tether also maintains that its stablecoin, USDT, is fully backed by U.S. dollar reserves. This claim is one of the most discussed aspects of Tether and there’s still no clear evidence if this is indeed the case. Nevertheless, Tether general counsel Stuart Hoegner is pushing the claim forward.

More accusations heaped on Tether’s shoulders

“According to the website and our terms of service, our reserves include traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties. The 74% figure refers to particular assets at that point in time, not the aggregate reserves,” Hoegner said.

The New York Attorney General’s office is currently investigating iFinex, the parent company of Tether, on suspicions of fraudulent activities. Bitfinex, a crypto exchange that is the issuer of Tether, is being scrutinized as well.

Tether’s reputation continues to take a hit

Adding more suspicion on Tether’s part is the fact that it broke off its relationship with auditing firm Friedman LLP, which was supposed to oversee the inspection of the stablecoin’s reserves. Until now, it’s still unclear why the partnership was dissolved. But the audit is rooted in the accusations that Tether has been minting tokens out of thin air to pump Bitcoin’s price.

Crypto analysts have been monitoring Tether’s activity in recent years and found that whenever Tether mints new USDT, Bitcoin’s price tends to spike. A few weeks ago, Tether minted 30 million USDT after Bitcoin’s price fell down to $7,500, FXStreet reported.

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
  • Moses
  • 2020.04.29 18:16:06
I am a cryptocurrency trader and i make over 200% daily, If you are interested,i can teach you how to trade and also help you achieve your goal in life with crypto i can turn
$4500 into $35000 in less then four weeks,now that bitcoin has low prices...please note that cryptocurrency trading is bitcoin unlike binary and Forex,bitcoin is traded for altcoins also you can reach to me if you are new to bitcoin and to give you more info and guideline on how to invest smartly, this is opportunity life time knocking on your door ???? inbox me for more me on WhatsApp +1(206)-742-5358 thank you to you all and God bless you .……….....
  • 0
  • ·
  • 0
  • Bitcoin (BTC) $9,268.23 (+0.22%)
  • Ethereum (ETH) $240.94 (+0.42%)
  • XRP (XRP) $0.224600 (+0.84%)
  • Bitcoin Cash (BCH) $237.51 (-0.01%)
  • Bitcoin SV (BSV) $185.33 (+1.70%)
  • Bitcoin (BTC) $9,268.23 (+0.22%)
Feb 21, 2020 (Friday)
Paxos launches blockchain-based securities settlement solution with Credit Suisse and Instinet
Brazil to launch new payment system in response to cryptocurrencies
Digital currency exchange Coinbase Pro lists Kyber Network token
Norwegian Air to soon start accepting crypto payments
Swedish central bank begins CBDC pilot with Accenture
Italian soccer team Juventus launches ethereum-based digital collectibles with Sorare
Feb 20, 2020 (Thursday)
Telecom companies complete cross-carrier mobile payments using blockchain
National Stock Exchange of Australia to develop DLT-based digital securities trading platform
South Korean ICO project discontinued, to return $7.5M to token holders
Samsung maintains crypto support in soon-to-launch Galaxy S20
BIS appoints Innovation Hub heads to lead Singapore and Switzerland
Coinbase becomes first crypto company to receive Visa principal membership
Dubai Economy and six banks launch KYC Blockchain Consortium
Crypto Technicals: ETH/USD under downside pressure after 'Bearish Engulfing' pattern
Tim Draper buys $1M worth of Aragon Tokens to create digital courts for DAOs
Renewable energy firm Acciona commits to take CBI’s blockchain-based carbon credits trading platform global
Crypto Technicals: BTC/USD trades below 21-EMA, break below 4H 200 MA (9386) to trigger further downside
Crypto exchange Coinfloor to launch a simplified bitcoin buying service
Indonesia’s customs department joins IBM- Maersk blockchain shipping platform “TradeLens”
Feb 19, 2020 (Wednesday)
Crypto custodian BitGo acquires digital securities startup Harbor
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.