Tether’s Cryptic Investments in Chinese Securities
According to documents divulged by the New York Attorney General, Tether, a significant stablecoin issuer, once had an investment in Chinese securities. This is despite its persistent denial of such claims. These securities were issued by notable corporations such as China Construction Bank Corp. and Agricultural Bank of China Ltd.
Rumors and Denials Surrounding Tether’s Investments
Rumors about Tether’s backing of its stablecoin with Chinese securities were rife at one point. Amid the speculation, Tether remained reticent, explicitly denying in September 2021 that it held commercial paper from the beleaguered Chinese real estate giant, Evergrande.
In July, Tether proclaimed that it was devoid of any Chinese commercial paper at that particular moment. Nonetheless, it kept mum about its past dealings. Simultaneously, it chastised critics who consistently disseminated false information about its commercial paper holdings, dismissing their claims as erroneous.
Freedom of Information Request Unveils Tether’s Past
The illuminating documents were made public due to a freedom of information request. They comprise part of the data accumulated by the New York Attorney General in its thorough investigation into Tether, culminating in a 2021 settlement and an $18.5 million penalty.
Tether’s Current Position on Commercial Paper
Tether, currently, insists that it has entirely expunged commercial paper from USDT’s backing, in a move to restore transparency and trust in its stablecoin.