Bitcoin (BTC) fell to $70,022, driven by news of potential retaliation from Iran and a decline in the SPX, which contributed to rapid sell-offs. Market participants are concerned as such volatility in cryptocurrencies has been observed multiple times over the last two quarters. Consequently, losses exceeding 5% in altcoins have drawn attention. Turning to Tether, the company released its earnings report for the third quarter.
Tether Earnings Report
The company published its latest report for the third quarter. As of September 30, Tether's third-quarter earnings amounted to $2.4 billion, with $1.3 billion generated from treasury bonds and $1.1 billion from the rise in gold prices.
The total assets in U.S. Treasury bonds reached $102.5 billion in the last quarter. Following Germany, Australia, and the UAE, Tether is now the 18th largest bond investor. The excess reserves exceed $6 billion, indicating that even if all tokens were redeemed, the company would still possess additional assets of $6 billion.
Tether and Legal Allegations
Officials from Tether expressed surprise at the recent allegations, stating their ongoing cooperation with law enforcement. According to WSJ reports, the U.S. has initiated various investigations regarding Tether. Though some past accusations proved unfounded, it was noted that WSJ had previously announced the investigation into Binance.
Despite facing various allegations—from facilitating business with sanctioned countries to violating anti-money laundering regulations—the company stated that authorities have not communicated with them regarding any investigation, lawsuit, or indictment. Mainstream media has raised numerous claims about Tether over the years, contributing to market fluctuations. A positive development is that Tether's reserves consist of U.S. Treasury bonds, suggesting that potential high redemptions can be met without breaching its peg.