Stuart Hoegner, GC at Bitfinex and Tether reinstated on how we are aware of an anonymous Medium post entitled, “The Bit Short: Inside Crypto’s Doomsday Machine.” The post is filled with falsehoods, fabrications, and already-debunked theories. Tether tokens (USDt) are the most liquid, stable and trusted stablecoins, and every Tether token is 100% backed by our reserves.

He also pointed to how beyond its false claims about Tether token, this post really amounts to an attack on the entire cryptocurrency ecosystem. Also, Bitcoin has a market cap of above US$600B, and the growing number of major institutions that are investing in bitcoin is a tribute to how far the crypto space has evolved. He also pointed to how the author demonstrates an alarming lack of understanding of how the crypto industry works, and of how much development and growth is taking place.

Someone who read the content stated, On January 9th, 2021, I liquidated my crypto position for USD. In the process, I locked in a dollar-denominated gain that — in the interest of full disclosure — I can only describe as life-changing. Not sure why is it getting so much attention. Writer wants to buy his bag back.

Yet another user pointed to how it seems to often be the case that those presenting cases against the ecosystem sold out at an earlier date and are now full of salt.

While there is no question about the liquidity and stability offered by USDT and even the trust factor is super good, but all eyes are curious about the Audited and Verified stuff.  Some feel that the content is not an attack on the entire cryptocurrency ecosystem. And, that it is wide-aiming criticism of the “don’t verify, trust” which doesn’t address the underlying concerns about the risk.

Some of them were pulling at Stuart asking why either he or anyone else at Tether don’t write an article refuting its concrete claims with hard evidence.

Tether (USDT) is it a Fraud?

There is an insightful podcast about Tether with Gregory Pepin, Deputy CEO at Deltec Bank and Trust, which explores through a detailed discussion on whether Tether is a fraud.  They respond to the pseudonymous Crypto Anonymous that Tether is a “highly probably fraud.”

In this episode, he covers for how Deltec accounts for its reserves, and why they didn’t show up on Crypto Anonymous’s blog post where the dollars backing Tethers are held; how Tethers get created; where Tether Ltd. keeps its cash equivalents; why there’s more demand for trading with USDT than with USD partially because of the arbitrage opportunity between East and West.

Also, covers for how Tethers get created using Deltec; why USDT gets minted in very round numbers as opposed to very specific numbers that USDC is minted in;  where the cash equivalents backing Tethers are held; what type of due diligence Deltec conducted when it took on Tether Ltd. as a customer; why the perception that Tether is unregulated compared to other stablecoins is false; what Deltec thinks about the New York Attorney General office’s investigation in to Tether; why Deltec has a large position in bitcoin.