Hindenburg Research is offering a $1 million bounty for shedding light on one of the crypto industry’s biggest mysteries: Tether’s reserves
Stablecoin issuer Tether has called the $ 1 million bounty announced by New York-based investment firm Hindenburg Research “cynical.”
Aptly named after one of the worst airship disasters in history, Hindenburg is notorious for opening short positions on stocks that it thinks will crash. The company’s best-known targets include electric car maker Nikola and sports betting operator DraftKings.
On Oct. 19, the firm announced a reward of up to $1,000,000 for anyone who provides exclusive information about the backing of Tether’s flagship USDT stablecoin since it has doubts about the legitimacy of its “opaque” disclosures.
Hindenburg Research founder Nathan Anderson believes the public deserves to know about Tether’s holdings:
We feel strongly that Tether should fully and thoroughly disclose its holdings to the public. In the absence of this disclosure, we are offering a bonus of $ 1,000,000 to anyone who can provide us with exclusive details of Tether’s alleged reserves.
For now, the short-selling research company does not hold any position in either Tether or any other cryptocurrency.
The stablecoin issuer accused Hindenburg of “opportunism” in the aforementioned statement:
This is not the first time Hindenburg Research has orchestrated an apparent scheme in pursuit of profit. It won’t be the last either. Tether loathes and denounces their transparent actions and motives.
Last week, as reported by U.Today, Tether was ordered to pay a $41 million fine by the Commodity Futures Trading Commission (CFTC) for lying about its being backed one-to-one by the greenback.
USDT’s market cap broke the $ 70 billion mark earlier today.
