The cryptocurrency market was shaken today by yet another stablecoin de-peg event. This time, the actor was the largest stablecoin Tether (USDT). USDT fell today as NYAG gave one of its quarterly financial records to Coindesk. This move raised doubts for market players.
Tether (USDT) lost peg on NYAG’s move
As you follow on Kriptokoin.com, the world of cryptocurrencies went through a jolt today. The de-peg of Tether (USDT), the industry’s largest stablecoin, was instrumental in this. Meanwhile, the stablecoin later struggled to earn its peg. However, it fell as low as $0.9958 on the day. The expert suggests that this de-peg thing stems from the credit saga on the DeFi platform Curve. However, get Tether Holdings Ltd to make new statements about all developments. The statement he published in this direction revealed new details.
As the company notes, the New York Attorney General’s Office (NYAG) provided materials on the first of its quarterly reports to Coindesk, which requested them shortly after Tether and NYAG reached a settlement agreement in 2021. According to Tether, the documents were released because he dropped his opposition to Coindesk. The stablecoin issuer said it initiated opposition proceedings in the first place “to prevent the use of sensitive business information that could potentially be exploited by malicious actors.”
Tether said some of the documents shared with Coindesk include statements from Tether’s banks showing the full presence of the company’s reserves, how the firm approaches its asset management obligations and short-term investments and diversification. Seeing as a proactive move, Tether noted that there has been a lot of distortion regarding the content of the documents and wanted to point out that the financial transactions do not reflect the current realities of the firm. The stablecoin issuer urges Coindesk not to disclose past or current information about its clients. However, he does not trust the news organization to comply with the legal coverage.
Are we going to live like the Alameda Research saga?
Coindesk has previously revealed the most confidential financial details about major companies in the industry. Therefore, it has played a very important role in the crypto ecosystem. Accordingly, in November last year, the trading firm founded by Sam Bankman-Fried, co-founder of FTX, made a very important news about the financial and operational impropriety of Alameda Research. The revelations that emerged at that time led to the downfall of FTX. Therefore, the crypto industry is now experiencing a similar fear regarding Tether.
Meanwhile, Tether is in a controversial position as it faces FUD everywhere. On the other hand, the firm has managed to fend off most attacks so far. The question now is whether it can survive the details that the published documents may reveal. In case the details are disputed, FUD may be just getting started.
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