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Tether Denies Allegations of Chinese Securities in USDT Reserves

Tether, a major stablecoin issuer, disputes claims regarding the presence of Chinese securities in their reserves.

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Tether Refutes Media Reports

Tether, the issuer of the USDT stablecoin, has made a public rebuttal to recent reports from various media outlets, including Bloomberg and CoinDesk. The company strongly criticized these reports and emphasized that the information disseminated doesn't accurately portray the company's current standing. Tether noted that they "do not condone this behavior," stating that their main priorities are their customers.

Alleged Ties to Chinese Securities

News broke on June 16 that Tether once held securities from Chinese state-owned firms in their reserves. Media outlets, relying on documents released by New York's Attorney General (NYAG), reported that USDT was previously backed by securities from Chinese institutions such as the Industrial and Commercial Bank of China, China Construction Bank, and Agricultural Bank of China.

Tether's Response to the Allegations

Responding on the same day, Tether disputed the reports and condemned the media outlets' hasty actions without considering the current events or factual evidence. They further commented that the information passed onto these platforms was not only limited but was also outdated, being over two years old.

Clarity on Exposure to Chinese Commercial Papers

Tether went on to clear up their relationship with Chinese commercial papers. They confirmed that any exposure they had was liquid and that the issuing firms were stable. They also emphasized that these papers were popular among some of the largest investment managers globally. Tether insisted that all the implicated Chinese banking-related commercial papers were rated A1 or better.

Tether's Current Stand on Commercial Papers

Finally, Tether announced that their exposure to commercial paper holdings was reduced to zero last year. According to the company, they didn't incur any financial loss from these holdings, including those issued by Chinese entities. This statement helps to clarify the company's current financial position in relation to commercial papers.