Sharing details on Tether’s ‘supposed’ reserves will now fetch $1M

Sharing details on Tether's "supposed" reserves will now fetch $1 million
“Sharp Dressed Bounty Hunter” by Reiterlied is licensed under CC BY-NC-SA 2.0
  • Hindenburg Research has announced a $1 million bounty for information on Tether’s reserves.
  • Tether responded by calling out the firm’s move as a “pathetic bid for attention.”

KOLKATA (CoinChapter.com) – Financial forensic research firm Hindenburg Research announced the Hindenburg Tether Bounty Program on Wednesday. Individuals with information on Tether’s backing and the details of its reserves stand to win rewards of up to $1 million.

“We feel strongly that Tether should fully and thoroughly disclose its holdings to the public. In the absence of that disclosure, we are offering a $1,000,000 bounty to anyone who can provide us exclusive detail on Tether’s supposed reserves.”

Hindenburg Research founder Nathan Anderson said in an offcial announcement

The company’s equivocal state of USDT reserve backing attracted a $42.5 million fine from the US Commodity Futures Trading Commission. Plus, Celsius boss Alex Mashinshy recently revealed that the stablecoin company accepts Bitcoin as collateral for shelling out USDT loans.

Related: Tether favors Bitcoin and other cryptos in exchange for USDT loans: Report

In Pursuit Of The Truth

Hindenburg Research expressed concerns about the reserves backing the USDT tokens. According to the firm, Tether’s recent disclosure of USDT stablecoins backed majorly by commercial paper doesn’t serve the case. The issuers of commercial paper that supposedly back USDT remain unknown.

The financial forensic research firm also pointed out how Tether, despite its regulatory blunders, has failed to reveal the exact details of its holdings to the crypto community.

Related: Bitfinex, Tether Ordered To Stop Trading In New York

A $70 billion market cap puts Tether in line with the biggest crypto companies. Also, according to recent reports, the company is one of the largest holders of commercial paper in the world. And yet, there is no information on their whereabouts.

“We’ve got lots of inquiries and heard lots of discussion, but have not seen any active participation.”

Deborah Cunningham of the Federated Hermes told the Financial Times

Tether Hits Back

The stablecoin company naturally didn’t take the move lightly.

“This stunt from Hindenburg Research is a pathetic bid for attention while others are making real change and building wealth and results. They are attempting to discredit not just Tether, but an entire movement.”

reads Tether’s opening lines from a response statement

The Bitfinex sister firm blasted Hindenburg Research’s bounty program as “an apparent scheme in pursuit of profit”.

“Tether abhors and denounces their actions and transparent motives.”

added the company

Tether CTO Paolo Ardoino even went to the extent of ‘memeing’ the financial forensic research firm’s bounty announcement.

The company expressed how it stands to ‘honor customer needs’, follows regulations and industry norms, which reflects on its commitment towards stakeholders. And some more lofty words.

“Tether is a trailblazer, a special breed in business, and we have big visions for the future. Like those that came before us, and those who will come after, we are scrutinized more than others, and especially our peers and competitors, but we understand our role and responsibility and will continue to focus on our customers’ requirements and defending the crypto markets.”

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