Tether's $30 Billion Mystery: FTX Role in USDT Creation Under Scrutiny – Coinpedia Fintech News

  • An influencer’s tweets have raised questions about the large volume of Tether created and used by Alameda Research.

  • Alameda’s creation of 36 billion USDT and a mere redemption of 4 billion has sparked concerns – where is the $30 Billion?

  • Unusual pricing on Alameda’s FTX exchange and the revelation of 60% of loans to Alameda has raised alarms.

Amid all the buzz about Sam Bankman-Fried’s FTX fraud trial, a new development is unfolding and gaining public attention.

Well-known crypto influencer Dylan LeClair has recently shared a series of tweets that raise important questions about the vast amounts of Tether (USDT) created and used by Alameda Research. This investigation adds another layer of complexity to the story involving FTX, Alameda, and their puzzling relationship with Tether.

Revealing the Tether Mystery

LeClair’s tweets reveal that Alameda has created a massive 36 billion USDT while only redeeming 4 billion, leaving more than 30 billion USDT in circulation. Since Tether claims to be backed by the U.S. dollar, this naturally raises a crucial question: “Where is the $30 billion?”

LeClair takes the discussion further by suggesting that a substantial amount of U.S. dollars must have been transferred to Tether to create these billions. However, as the FTX trial continues, we still lack information about this transaction between Alameda and Tether. This lack of information adds to the mystery surrounding these large sums.

Price Differences

Another interesting point LeClair raises is the unusual price differences observed on Alameda’s FTX exchange. Even though Alameda is the largest issuer of Tether, they value other stablecoins at 1.0 on their platform but assign a value of 0.95-0.975 to USDT. Could this be a sign of something more concerning beneath the surface?

LeClair concludes his tweet series with a surprising revelation: an incredible 60% of the loans extended during the past summer were given to Alameda. These loans were mainly backed by FTT tokens as collateral, a situation that LeClair fittingly describes as “absolutely insanity.” This points to a potential risk within the crypto industry that requires careful attention.

Also Read: Sam Bankman-Fried Was Manipulating Bitcoin Price to Stay Under $20,000, Ellison Claims

The Community is Watching!

As the FTX trial continues, LeClair’s tweets are inspiring the crypto community to take a closer look at Alameda Research and its complex transactions. Notably, Peter Easton, an accounting professor at the University of Notre Dame, has already shared details about FTX’s use of over a billion dollars in customer funds for various purposes, including real estate, political contributions, and business investments.

Also Read: Sam Bankman-Fried’s Fraud Exposed: Secret Messages Reveal Disgust for Regulation

Do you think there is more to the story than meets the eye? Share your insights with us.

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