Crypto Bank Questioned

There are about $216 Billion worth of cryptocurrencies in circulation (according to the Wall Street Journal) and of that, about $3 Billion is in the cryptocoin Tether.

tether-issues-another-250m-worth-new-usdt-tokens

A major reason for this is that Tether claims to be backed by the strongest fiat currency in the world: the US Dollar.

However, the WSJ reports that Tether has never proven that it has the cash reserves to back up its claim.

Although Tether is considered by many as the “cryptobank” for the cryptocurrency market, it recently fired its auditor before the audit report was released. The auditor refused to comment.

This lack of transparency was a major reason why the SEC refused to approve a proposed #Bitcoin ETF. (WSJ subscription may be required).

https://www.wsj.com/articles/the-mystery-behind-tether-the-crypto-worlds-digital-dollar-1534089601

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
This entry was posted in accredited investor, balance, Banking, Banks, CFTC, checkbook, Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Funding Portals, Investments, Jobs, Legislative Intent, review, SEC, technology, VC, Venture Capital and tagged , , , , , , , , , , , , , , . Bookmark the permalink.

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