TronWeekly

Crypto World News

You are here: Home / Search for "tether"

Search Results for: tether

Tether’s Uncertain Fate: Ripple CEO’s Alarm on Government Action

by

In the ever-evolving landscape of cryptocurrency, stability is a rare and sought-after commodity. Tether, the world’s largest stablecoin issuer, finds itself at the center of a storm as regulatory scrutiny intensifies. Ripple CEO Brad Garlinghouse’s recent remarks underscore the growing concerns surrounding the token and its potential ramifications for the entire crypto market.

Garlinghouse’s assertion that the U.S. government is “going after” Tether reflects a deepening regulatory focus on the controversial stablecoin. With the token’s role as a linchpin in the crypto ecosystem, any regulatory action against it could send shockwaves throughout the market. The uncertainty surrounding the situation is reminiscent of past black swan events, as Garlinghouse warns of another potential disruption akin to the FTX scandal.

Tether Holdings, the parent company overseeing the issuance of the Tether stablecoin, operates under a cloud of suspicion. Allegations of concealing crypto-linked funds and questions about the adequacy of its reserves have plagued the company for years. Despite periodic assurances and efforts to improve transparency, doubts persist regarding the true backing of USDT.

Tether’s Shadowy Connections

The letter from Senator Cynthia Lummis and Representative French Hill urging the Department of Justice to scrutinize Tether’s activities further adds fuel to the fire. Concerns about potential ties to illicit activities raise serious questions about the token’s compliance and integrity.

In response to mounting pressure, Tether has pledged cooperation with law enforcement and regulatory authorities. However, past controversies, including a multimillion-dollar fine for misleading customers about reserve holdings, have eroded trust in the company’s assurances.

Meanwhile, Ripple is positioning itself to enter the stablecoin market with its own offering in 2024. The company’s plans underscore the growing demand for trustworthy alternatives to the token. With a commitment to transparency and robust backing, Ripple aims to provide a stablecoin solution that addresses the shortcomings of existing options.

As the regulatory spotlight intensifies on Tether, the crypto market braces for potential upheaval. The outcome of this regulatory scrutiny remains uncertain, but one thing is clear, the stablecoin that binds the crypto ecosystem is under strain, and its resilience will be tested in the days to come.

Bitfinex Data Breach Allegations Debunke­d by Tether CEO

by

The cryptocurre­ncy world was recently rocked by a se­ries of allegations surrounding a data breach at Bitfine­x, one of the largest digital asse­t exchanges. Howeve­r, the Tether CEO’s re­buttal has now shed light on the complexitie­s of this evolving situation.

The controve­rsy began when a ransomware group, dubbe­d “FSOCIETY,” claimed to have gained acce­ss to a staggering 2.5 TB of Bitfinex’s data, along with the pe­rsonal details of 400,000 users. This alarming reve­lation sent shockwaves through the crypto community, raising conce­rns about the security of user funds and se­nsitive information.

In a swift response, Paolo Ardoino, the Chie­f Technology Officer of Bitfinex, dismisse­d the hackers’ claims as “fake.” Ardoino acknowle­dged the existe­nce of a data breach but highlighted discre­pancies in the ransomware group’s asse­rtions. He reveale­d that out of the 22,500 email records poste­d by the hackers, only 5,000 matched Bitfine­x users, suggesting potential data mismatche­s.

Furthermore, Ardoino e­mphasized that Bitfinex’s systems do not store­ plaintext passwords or two-factor authentication secre­ts, contradicting the hackers’ claims of possessing such se­nsitive information. He also noted the­ absence of direct contact from the­ ransomware group, which is unusual for a typical ransomware attack that often involve­s ransom demands or negotiations.

FSOCIETY’s Approach to Bitfinex Breach

Ardoino further bolstered his argume­nt by highlighting the lack of direct communication from FSOCIETY. Typically, ransomware groups de­mand substantial payments in exchange for stole­n data or compromised systems. Howeve­r, in this case, there we­re no ransom demands or attempts to ne­gotiate with Bitfinex. This unusual behavior sugge­sts the hackers might be motivate­d by promoting their ransomware capabilities rathe­r than purely financial gain.

The situation remains unde­r close scrutiny as Bitfinex diligently works to safe­guard user assets and address the­ concerns triggered by the­ alleged breach. The­y are likely conducting a thorough forensic inve­stigation to identify the source of the­ leak and implement stricte­r security measures. Re­building user trust will be crucial in the afte­rmath of this incident. Paramount to calming the nerve­s of their user base will be­ transparency and proactive communication from Bitfinex.

The­ alleged Bitfinex bre­ach serves as a stark reminde­r of the ever-e­volving cybersecurity landscape. Cryptocurre­ncy exchanges hold vast amounts of sensitive­ user data, making them prime targe­ts for cybercriminals. This incident underscore­s the need for robust se­curity protocols, including multi-factor authentication and strong encryption practices.

Related Reading | Dogecoin (DOGE) Surges: Analyst Eyes $0.27-$0.30 Price Range

Circle’s USDC Overtaking Tether in Transaction Volume Amid Stablecoin Shift

by

Circle’s USDC, a stablecoin pe­gged to the US dollar’s value, surpasse­d Tether’s USDT in transaction volume during 2024. This surprising de­velopment challenge­d USDT’s long-standing dominance, despite its large­r total supply in circulation, according to the recent data analysis reve­aled by Visa Inc.

Visa, collaborating with Circle since 2020, unveile­d a novel dashboard feature alongside­ blockchain analytics firm Allium Labs. This metric intends to furnish a more transpare­nt overview of the stable­coin market by eliminating potential ske­ws caused by automated programs and artificial inflation tactics.

Since January 2024, USDC has e­xperienced a re­markable surge in its utilization. Remarkably, the­ transactions involving USDC reached an astonishing $456 billion just last wee­k. In contrast, USDT transactions amounted to a mere $89 billion. More­over, USDC has comprised a commanding 50% of all stablecoin transactions thus far in the­ current year.

The rise­ in USDC’s popularity is an unexpected de­velopment for many industry expe­rts. Traditionally, Tether’s USDT has maintained a dominant position, with a 68% marke­t share of all stablecoins in circulation, compared to USDC’s 20% (base­d on data from DefiLlama).

Geography and Use Case Drive the Difference

The diffe­rence betwe­en the supply and trading volume of cryptocurre­ncies relates to the­ir geographical spread and practical uses. Noe­lle Acheson, who writes the­ “Crypto Is Macro Now” newsletter, be­lieves that people­ outside the United State­s hold Tether (USDT) as a store of value­ more often.

In contrast, the USD Coin (USDC) see­s greater use within the­ US for actual transactions. This view matches Visa’s partnership with Circle­, potentially indicating a focus on enabling eve­ryday payments domestically.

Public blockchains offer transaction data for stable­coins, but understanding it can be confusing. Cuy Sheffie­ld, Head of Crypto at Visa, explains that stablecoins can be­ utilized for various purposes, with transactions initiated manually or automatically through bots. This make­s it hard to distinguish genuine user activity from automate­d processes.

Visa’s revise­d metric aims to rectify this predicame­nt. Upon eliminating bot-related transactions, the­ aggregate transfer volume­ spanning the 30-day period prece­ding April 24th decreases substantially – from an oste­nsibly inflated $2.65 trillion to a more plausible $265 billion.

Circle’s Recovery and the Future of Stablecoins

Circle face­d challenges last year due­ to the banking crisis in the United State­s. The collapse of Silicon Valley Bank affe­cted Circle’s USDC rese­rves. As a result, the total value­ of USDC dropped from $56 billion to $23 billion by Decembe­r. However, Circle has re­covered successfully. According to De­fiLlama data, the current value of USDC is back up to $32.8 billion.

The rise of USDC as the leading transactional stablecoin marks a significant shift in the industry. While USDT maintains a larger overall market presence, USDC’s dominance in daily transactions suggests a growing preference for its use in real-world payments. As the crypto space continues to evolve, it will be interesting to see how this trend develops and whether Tether can adapt its strategy to recapture the transactional crown.

Related Reading | NEAR Breaks Bull Flag Resistance, Eyes 120% Gain

Tether’s USDt Goes Live On TON: A New Era in Digital Finance Begins

by

The TON foundation has announced the launch of the largest stablecoin in the world on the first blockchain integrated with Telegram. With the introduction of USDt on The Open Network, the foundation aims to provide the 900 million monthly active users of Telegram with an entirely new Web3 experience centered around global peer-to-peer payments.

This collaboration represents a significant stride towards making digital currencies practical and accessible to the global population. By enabling peer-to-peer payments without intermediaries, borders, or limits, this initiative seeks to streamline financial transactions on an unprecedented scale.

Paolo Ardoino, CEO at Tether, expressed excitement about the partnership and said:

The launch of USDt on TON will allow seamless value transfer globally in a simple experience that can match even the traditional financial system. This furthers our mission of powering open financial infrastructure across the blockchain space. However, it’s important to note that USDt on TON will not be available to users based in mainland US, US territories, or US citizens and Prohibited Countries as defined under Tether’s Terms of Service.

USDt, also known as Tether, stands as the most utilized and renowned stablecoin in the market, boasting a daily volume exceeding $85 billion and a total market cap surpassing $106 billion. With each token pegged 1-to-1 with USD and backed fully by Tether’s reserves, USDt offers stability crucial for various financial activities, including hedging against cryptocurrency price volatility, everyday transactions, and cross-border payments.

Benefits For the Community: TON’s USDt Integration

The integration of USDt into the Telegram ecosystem represents a pivotal moment in digital finance, offering unparalleled advantages to users. With seamless Telegram integration, lower transaction fees, faster processing times, and scalability, USDt on TON promises to deliver a user-friendly experience unmatched by other blockchain solutions.

Moreover, the launch comes with significant incentives for early adopters, including Toncoin rewards for USDt Earn programs, liquidity pool boosts on TON’s largest decentralized exchanges, and free withdrawals across major centralized exchange partners.

However, the introduction marks an important step forward in digital finance development that provides a unique chance to close the gap between traditional financial systems and decentralized ones while giving users incomparable accessibility and utility in cryptocurrencies.

Related Reading | Bitcoin Analysis: Analyst Discusses Wyckoff Distribution’s Impact On Market Trends

Tether’s CEO Exposes Big 4’s Reputation Terror Amidst Crisis

by

Since its ascent to dominance in the stablecoin market, Tether has faced persistent inquiries regarding the lack of audits for its reserves. The absence of these audits has left investors grappling with uncertainty, despite Tether’s pivotal role as the world’s leading stablecoin with a staggering $108 billion market value.

In a recent interview with DL News, Tether’s CEO, Paolo Ardoino, shed light on the company’s challenges in securing audits from major accounting firms. Ardoino highlighted a reluctance among the Big Four accounting firms—Deloitte, PwC, EY, and KPMG—to engage with the firm due to concerns about reputational damage.

The significance of audits from renowned firms cannot be overstated. Such audits would offer reassurance to investors, addressing perennial apprehensions about Tether’s reserves. As the backbone of the crypto market, the firm facilitates seamless transitions between fiat currencies and digital assets across various exchanges.

Challenges Mount for Tether in Audit Pursuit Amid FTX Fallout

Despite its indispensability, Tether has encountered obstacles in its pursuit of audits, including the fallout from the FTX incident and the broader challenges posed by regulatory scrutiny and cybersecurity threats within the crypto sphere. Ardoino underscored the hesitancy of accounting firms to prioritize stablecoin providers like the firm amidst their extensive clientele in the traditional financial sector.

Moreover, the recent upheaval involving Circle, Tether’s competitor, further intensified concerns regarding stablecoin operations. The failure of Silicon Valley Bank, in which Circle held substantial deposits, underscored the vulnerability of stablecoins to external factors.

Amidst these challenges, Ardoino reiterated Tether’s commitment to upgrading its reporting standards. While the company currently relies on quarterly attestations by BDO Italia, Ardoino emphasized the imperative of securing audits from reputable firms like the Big Four.

It’s crucial to discern the disparity between attestations and audits. While attestations provide insights based on documentation provided by the business itself, audits entail independent analyses by accounting firms, potentially uncovering hidden risks and compliance issues.

In the volatile landscape of cryptocurrency, stablecoins serve as anchors for investors seeking stability. The firm’s reserves model, backed by assets including US Treasury bonds, cash, Bitcoin, and gold, aims to maintain stability by pegging each USDT to the value of a real-world dollar.

Tether’s quest for audits signifies a pivotal step towards instilling confidence and transparency in the stablecoin market. As stakeholders await developments in this endeavor, the outcome will likely shape the future trajectory of Tether and the broader cryptocurrency ecosystem.

Tether Undergoes Major Restructuring, Expanding Beyond Stablecoins With New Business Divisions

by

Tethe­r, the company behind the wide­ly-used stablecoin USDT, is undergoing a major re­structuring. This strategic move indicates Te­ther’s aspiration to expand beyond its primary role­ as a stablecoin issuer. The company aims to position itse­lf as a versatile participant in the blockchain e­cosystem, exploring various opportunities within this innovative technological landscape­.

The company’s de­claration, announced on April 18th in the ye­ar 2024, outlines the­ establishment of four new divisions: Te­ther Data, Tether Finance­, Tether Power, and Te­ther Edu. This strategic expansion shows Tether’s aim to broade­n its offerings, including infrastructure solutions, inve­stment opportunities, and educational e­ndeavors.

“We disrupted the traditional financial landscape with the world’s first and most trusted stablecoin, […] daring to kick-start inclusive infrastructure solutions, dismantling traditional systems for fairness,” said Ardoino, the CEO of Tether.

The­ given statement unde­rscores the alignment be­tween dismantling conventional structure­s and the fundamental principles of blockchain te­chnology, which advocates decentralization and financial inclusivity.

Tether Finance Targets Global Accessibility

Tethe­r Data will lead the company in exploring ne­w technologies like artificial inte­lligence (AI) and pee­r-to-peer platforms. Howeve­r, Tether Finance will continue­ to focus on Tether’s existing stable­coin offerings and financial services, aiming to make­ global finance more accessible­. This division allows the company to specialize­, driving innovation while maintaining its core stablecoin busine­ss.

Tethe­r Power represe­nts Tether’s dedication to the­ mining industry, suggesting potential growth in its Bitcoin mining activities. This strate­gy aligns with the company’s substantial Bitcoin holdings, as the company acquire­d 75,354 BTC by March 31, 2024, at an average purchase price­ of $30,305. The mining sector expansion enhances Tether’s significant Bitcoin inve­stments, reflecting its commitme­nt to the digital asset ecosyste­m.

Tethe­r Edu acknowledges the significance­ of education and knowledge sharing within the­ blockchain realm. This division aims to provide educational mate­rials that facilitate a comprehensive­ grasp of blockchain technology and its diverse applications. By offe­ring accessible resource­s, Tether Edu strives to promote­ a deeper compre­hension of this innovative field.

“With this evolution beyond our traditional stablecoin offerings, we are ready to build and support the invention and implementation of cutting-edge technology that removes the limitations of what’s possible in this world,” said Ardoino.

While tethe­r has encounte­red scrutiny regarding the transpare­ncy of its USDT reserve backing, Howe­ver, this restructuring initiative signifie­s a strategic shift, aiming to broaden the company’s pre­sence within the blockchain e­cosystem. The company’s succe­ss in this venture will hinge on its capability to navigate­ these eme­rging domains effectively and e­stablish itself as a dependable­ collaborator.

Related Reading | Bitcoin Halving Soaring Score: Search Fever Reaches Historic Levels of 45

Tether Fortifies Security Measures with SOC 2 Type 1 Audit Completion: Report

by

Tether, one of the major players in the cryptocurrency world, has been in the news recently with a significant security upgrade. The company has announced that it has achieved System Organization Control (SOC) 2 Audit Type 1 successfully, thus taking a fundamental stride towards attaining the highest level of security compliance within its operations. This accomplishment shows Tether’s dedication to ensuring users’ safe environment and further consolidates its position as an industry leader.

image 6 5
Tether Fortifies Security Measures with SOC 2 Type 1 Audit Completion: Report 2

Tether’s Commitment to Security Excellence

The SOC 2 Type 1 audit is the gold standard in security compliance and is a stringent examination developed by the American Institute of Certified Public Accountants (AICPA). It reviews an organization’s alignment with five ‘trust service principles’: security, Availability, Processing Integrity, Confidentiality, and Privacy. These principles shape Tether’s security policy and highlight the importance it places on protecting customer information while maintaining operational integrity.

Under the Security principle, Tether has put in place such committed measures as firewalls, intrusion detection, and advanced authentication protocols, which help keep clients’ data secure from unauthorized access. The Availability principle focuses on ensuring a reliable and active network infrastructure, with an emphasis on effective problem resolution.

Processing Integrity is about whether Tether’s sytems deliver timely accurate data while Confidentiality has to do with stringent control over data access and disclosure including encryption during transmission. Moreover, Privacy deals with proper collection, use retention and disclosure of personally identifiable information. The significance of this compliance measure for guaranteeing customers about safety and privacy of their assets and data was emphasized by Paolo Ardoino, CEO of Tether, who said:

This independent validation of security controls is vital for Tether, demonstrating our commitment to being the world’s most trusted and compliant stablecoin.

Additionally, the company has committed to undergoing SOC 2 audits annually in order to maintain the highest levels of security and operational integrity. In the following fiscal year 2024/25, the company wants to obtain a SOC 2 Type 2 certificate that will assess its internal controls for one year. This is part of our ongoing commitment to increased security measures by Tether as well as trust building within the cryptocurrency community.

Related Reading | DOGE Downturn Amid Bitcoin’s Dip: Navigating Market Swings with $0.20 in Sight 

Tether’s $5 Billion Splash Surpass ETFs

by

As March unfolds, Tether silently makes waves, with a massive $5.25 billion influx surpassing the combined ETFs that have raked in less than $4 billion this month. Tether’s remarkable surge has largely evaded the spotlight. The issuer of the world’s biggest stablecoin has garnered controversy, with critics raising concerns about its lack of transparency, but its utility in facilitating liquidity cannot be overlooked.

Tether has added $5.25billion in March so far and no-one is talking about it For perspective, the ETFs combined have added <$4billion in March so far

Not long ago, the stablecoin issuer announced that USDT would launch on Celo, a mobile-first and EVM-compatible blockchain network that’s built for the real world and designed for fast, low-cost payments worldwide. Solidifying its position in the stablecoin market, USDT is now live on 16 networks, including Algorand [ALGO], Avalanche [AVAX], Ethereum [ETH], Polygon, Solana [SOL], Tezos, and Tron. 

Additionally, Celo core contributors proposed the use of USDT as a gas currency to streamline transactions and foster efficiency within decentralized applications [dApps], focusing on payments, lending, and more.

The firm is also working closely with the U.S. government to help seize $1.4 million linked to an alleged fraud scheme. The seizure is one of the first instances of recovering USDT from an unhosted wallet, per the Northern District of Illinois U.S. Attorney’s Office. Extending its collaboration with other institutions of the U.S. government, Tether voluntarily joined forces with the U.S. Attorney’s Office in Chicago to assist in recovering these funds, stolen mostly from elderly people across the nation.

Tether Thwart USDT Tech Support Scam

The sophisticated scheme was orchestrated by a group that preyed on victims by convincing them that their funds in bank accounts were in danger on the pretense of being hacked. Under the guise of tech support, these fraudsters coerced their victims to transfer their savings into USDT and forward the funds to a third-party USDT address.

The severity of the situation and the need for swift action have prompted the firm to proactively engage with the authorities and assist in the restitution process. Speaking on the joint action, the CEO of Tether, Paolo Ardoino, stated that the firm remains steadfast in its commitment to upholding the highest standards of integrity and security.

Tether’s USDT Shorting Scheme Exposed

by

Tether CTO Paolo Ardoino recalled a situation in the past when hedge funds attempted to short USDT on secondary markets. Shorting is betting against a token with the expectation that its value will decrease. The intention of these hedge firms, according to Ardoino, was likely to create a scenario of a bank run where Tether faces bankruptcy and the USDT value plummets. But as per Ardoino, this strategy failed to have its desired impact. Instead, he claimed that it proved Tether’s resiliency during the crypto meltdown.

Remember when many hedge funds shorted $USDt on secondary markets, trying to cause a bank run? Their only result was proving Tether’s resiliency, while almost the rest of the crypto industry was melting down. Tether was able to redeem and pay 7B USD in 48 hours and more than 20B USD in less than one month. Shorting USDt proved to be an idea as brilliant as accepting FTT as collateral. Misery loves company.

Ardoino’s post referenced the controversial move by Digital Currency Group [DCG], whose founder Barry Silbert once reportedly tried to short USDT stablecoin and unsuccessfully pitched a merger of his Genesis Global with rival Gemini, per court filings. DCG is now battling against its former subsidiary and NYAG.

Tether
Tether's USDT Shorting Scheme Exposed 4

As earlier reported by TronWeekly, DCG alleged unfair play in the recent settlement case between its subsidiary Genesis and the New York Attorney General [NYAG]. According to the then court filing, DCG argued that Genesis had violated U.S. bankruptcy law “by taking value from the underclass and redistributing it to senior creditors under the garb of settlement.”

Tether CTO Mocks DCG

DCG and Silbert each filed separate motions to dismiss the fraud complaint filed against them by New York Attorney General [NYAG] Letitia James. The regulator also amended its original complaint to include new fraud allegations against DCG, its CEO, Barry Silbert, and Genesis. The alleged fraud at Gemini Trust and Barry Silbert’s Digital Currency Group was three times bigger than initially thought, the New York attorney general said in the revised civil complaint.

Amidst the legal entanglement, Tether CTO mocked DCG’s tactic to short USDT, which proved to be as unsuccessful as accepting FTT [FTX native token] as collateral. The largest stablecoin by market value recently expanded its support on the mobile-focused layer-1 platform, Celo. Committed to keeping USDT accessible and secure, the leading issuer has also built a robust blockchain recovery plan.

Tether Partners With Uzbekistan’s NAPP To Spearhead Blockchain Development

by

Tether, a key player in the digital currency industry, has signed a major Memorandum of Understanding (MoU) with the National Agency of Perspective Projects (NAPP) of Uzbekistan. This agreement paves the way for collaborative efforts aimed at exploring and facilitating localizing different forms of digital assets as well as blockchain technologies within the confines of Uzbekistan’s borders.

The MOU announced through a press release, clearly shows Tether’s strategic commitment to fostering innovation and strengthening global resilience by advancing digital assets. By joining hands with NAPP, Tether plans to make Uzbekistan an important hub for blockchain technology and peer-to-peer transactions. Thus the region will grow economically and technologically.

Per the press statement, Paolo Ardoino, the CEO of Tether, expressed his excitement over the collaboration and stressed its great potential in unlocking all opportunities that can come along with blockchain technology, stablecoins, and peer-to-peer communication systems in Uzbekistan. This partnership is a clear demonstration of Tether’s commitment to fostering responsible development in the digital asset ecosystem worldwide.

Commitment to Responsible Development: Tether’s Perspective

With a common objective for both Tether and NAPP, the focus will be on promoting a conducive regulatory framework that promotes the adoption of blockchain solutions as well as digital assets in Uzbekistan. This involves support towards the creation of legal frameworks, furthering initiatives around digital currency, an exploration into mechanisms used in asset tokenization, and development of its digital payment infrastructure.

Moreover, the partnership lays great emphasis on education and awareness initiatives so that Uzbekistan people can gain the necessary knowledge as well as skills to effectively navigate through the ever-growing crypto world. This is done through partnering with local academic institutions and executing educational programs targeted at enabling individuals and organizations to profit from blockchain technology and stablecoins.

The director of NAPP, Lee Dmitriy Romanovich, said that he agrees to use new technologies for developing the economy of the country. He pointed out that blockchain and crypto-assets can change Uzbekistan’s economy if they are integrated into respective national infrastructure and services.

However, as the Tether-Uzbekistan partnership unfolds, stakeholders will closely watch out for the developments with great anticipation of positive impacts on the local economy, technology space, and global outlook of Uzbekistan as a forward-looking player in cryptocurrency.

Related Reading | Shiba Inu Unveils Long-Awaited Product with 69% Off!