Tether Denounces 3 ‘False Rumors’ About Its Statement Exposure
Tether, the company that issues USDT, the largest USD-pegged stablecoin, said it denounced so-called “false rumors” that it holds a large amount of Chinese commercial paper allegedly traded at a discount. The company also distanced itself from rumors related to Celsius (CEL) and Three Arrows Capital.
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.
In addition, the company responded to rumors that it was involved with Celsius, a crypto lender that stopped withdrawals after facing pressure, and Three Arrows Capital, a major crypto hedge fund that was 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.”