(Bloomberg) Tether, a stablecoin supposed to be worth only $1, is now troubling regulators with its $69 billion market cap.
Tether’s huge market cap is believed to be derived from its investments in Chinese commercial paper. The company has also earned billions of dollars in crypto-backed loans.
Former Noble Bank International LLC CEO is now accusing Tether’s CFO Giancarlo Devasini of putting reserves at risk and investing for a self-financial gain.
Tether is also under scrutiny after revelations that it no longer maintains all its assets at a bank in the Bahamas. Its executives have also come under a criminal investigation in the US over allegations they duped banks into opening accounts.
With a $69 billion market cap, Tether is supposed to be backed by an equivalent amount of assets, with the regulators saying it is now becoming a risk to the financial system.
USDTUSD is down -0.02%
