USDT issuer publishes official statement condemning false rumors
Today, June 15, the issuer of one of the most in-demand stablecoins (USDT), Tether, issued a denial of rumors about the portfolio of commercial papers that make up the USDT hedge pools. Tether also said it has no exposure to CeDeFi platform Celsius and crypto hedge fund Three Arrows Capital (3AC).
According to the rumors, which were later denied by the company, Tether’s commercial paper portfolio consisted of nearly 90% Chinese and other Asian securities and traded at a 30% discount due to market conditions. Tether and its spokesman, Paolo Ardoino, denied the rumors, calling them an attempt to create fear, uncertainty and dump.
Ardoino also said Tether had reduced its commercial paper reserves by nearly 50% since March 31, with just $8.4 billion remaining at the end of June. He also said that the company’s exposure to commercial paper will be gradually reduced to zero over future periods.
As for Celsius, it was stated that as with any other borrower, Tether was overcollateralized and, therefore, the position of the now infamous CeDeFi platform was liquidated, with no loss to Tether itself. Nevertheless, despite the absence of any credit relationship with Celsius, Tether still has investments in the platform made with its own funds.
With Three Arrows Capital, the situation, according to Tether, is even simpler because, according to the latter, no debt security has been provided to it. Therefore, these rumors are also categorically incorrect. Recall that the Three Arrows Capital fund faces the risk of a massive liquidation of its ETH positions following a possible attack.