#Tether transferred funds from US clients to Capital Union Bank, the issuer's Bahamas-based banking partner, via the Signet payments platform of #SignatureBank before the bank went out of business in March and was taken over by regulators.
Those with knowledge of the incident claim that Tether advised cryptocurrency users to pay for its #Stablecoins by sending dollars to its Bahamas-based banking partner Capital Union Bank Ltd.
Although the exact start date of the setup is unknown, it happened when Signature Bank was taken over by regulators last month, they claimed, requesting anonymity because the information was not made public.
Chief Technical Officer of Tether Paolo Ardoino answers:
"Tether had no direct or indirect contact with Signature."
Signet, which began in 2019 as a real-time payments network and was a critical piece of technology for many institutional clients using cryptocurrency, including the exchanges Coinbase and Kraken, is still in business even after regulators closed the bank.
The Wall Street Journal (WSJ) was recently accused of publishing and disseminating inaccurate information regarding Tether and its operations by the corporation. The #USDT issuer criticized the Wall Street Journal and other legacy media for writing negative articles about the company while applauding other cryptocurrency businesses that were some of the biggest financial disasters in history.
During times of market turmoil, like as the LUNA and FTX crises, Tether's stability was demonstrated. The company has demonstrated that it can continue to operate as its customers want it to by successfully processing over $20 billion in redemptions from market highs to lows.
This news is republished from https://coinaquarium.io/