Tether Condemns 3 ‘False Rumors’ About Its Exposure
Tether, the company that issues the biggest USD-pegged stablecoin USDT, said that it condemns what it calls “false rumors” that its holdings include large amounts of Chinese commercial paper that supposedly trades at a discount. The company also distanced itself from Celsius (CEL) and Three Arrows Capital-related rumors.
In a statement published on Tether’s website on Wednesday, the company said it is “aware of rumours being spread that its commercial paper portfolio is 85% backed by Chinese or Asian commercial papers and being traded at a 30% discount.”
“These rumours are completely false and likely spread to induce further panic in order to generate additional profits from an already stressed market,” the company said, adding that it “condemns such attempts” at manipulating market prices.
Tether further pointed to its latest assurance opinion as proof of what its reserves consist of. According to the document, as of March 31, around 47% of USDT’s reserves were US Treasuries, while commercial papers make up around 25% of the reserves.
The firm added that since the latest assurance opinion, its holdings of commercial paper have been further reduced, and said it will “gradually decrease to zero.”
“All commercial papers are expiring and will be rolled into US Treasuries with a short maturity,” the statement said.
Further, the firm also addressed rumors that it has exposure to Celsius, a crypto lending and borrowing firm that has halted withdrawals after coming under pressure, and Three Arrows Capital, a major crypto hedge fund rumored to be insolvent.
“Tether has currently zero exposure to Celsius apart from a small investment made out of Tether equity in the company,” the statement said, adding that the rumors about its exposure to Three Arrows Capital are “categorically false.”
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