Bloomberg has reviewed statements from four separate months detailing the cash held by Tether - and apparently the stablecoin really does have $1 in the bank for each of its 2.2b tokens. The revelation has reassured crypto markets, which long suspected the stablecoin of being a scam. Tether is still under investigation by the CFTC.
Worries about Tether are pervasive. Searching Google for “Is Tether a scam?” returns thousands of results. News stories have shown the cryptocurrency lacks transparency. The uproar grew when Bloomberg reported in January that the U.S. Commodity Futures Trading Commission issued subpoenas to Tether Ltd. and Bitfinex to check whether there was a cash stockpile. The current status of the CFTC investigation into Tether’s bank account couldn’t be determined. CFTC spokeswoman Erica Elliot Richardson declined to comment.