The Wall Street Journal released an investigative piece, revealing (1) the unequal allocation of USDT control among the founders of Tether. This is another article published throughout the years that makes claims against Tether, which manages the largest USDT stablecoin in the world and has a circulation of $68 billion.
The documents refer to the investigations against Tether carried out in 2021. The managerial ownership of Tether has been brought to light through an investigation carried out by the Wall Street Journal (WSJ).
The USDT stablecoin issued by Tether is the most widely used stablecoin and an essential component of the crypto currency industry's infrastructure. The USDT stablecoin is a digital asset that trades with other crypto currencies more frequently than any other.
According to the records published by the WSJ, Tether was once two firms run by a former child actor, Brock Pierce, and a former plastic surgeon, Giancarlo Devasini.
Additionally, Devasini is the individual who assisted in the development of the crypto currency exchange Bitfinex and is now the company's chief financial officer. According to the records, Devasini was the sole owner of 43 percent of Tether in 2018.
During that same period, two other Bitfinex and Tether executives, Chief Counsel Stuart Hoegner and CEO Jean-Louis van Der Velde, each had a 15% share in the stablecoin issuer. Christopher Harborne, a businessman based in the United Kingdom who controlled 13% of Tether, was the fourth owner of the company.
No the First Time that Tether Has Been Questioned
The stability of Tether has been called into doubt on several previous occasions; this is not the first time it has been brought up. According to several allegations published in the past, Tether does not have sufficient reserves to guarantee the liquidity of all of its USDT assets that are now in circulation.
Even though Tether's founders have consistently refuted any claims made against them in the past, they have not been honest with their business practices.
However, even though there have been multiple accusations made against the corporation, Tether has been able to survive the crypto carnage in the past. Per a piece in the WSJ, which cited the most current disclosures made by the company:
Because the value of tethers in circulation is marginally higher than that of Tether's assets, Tether has only a little buffer against losses. Tether's owners are believed to have received a windfall of several billion dollars due to rising interest rates. However, the turbulence in the crypto market has raised worries about Tether's stability.
Tether's USDT stablecoin was un-pegged from the USD on two separate occasions throughout the previous year. The first one occurred in May 2022, with the collapse of Terra, and the second one occurred in November 2022, following the collapse of the FTX exchange.
Paolo Ardoino, the CTO of Tether, said that the more clown stories, the more tether grows. People are aware that Tether advocates for freedom and inclusiveness. The mainstream media is disturbed by this, and the hole punch will eventually cause the media to crack.