Tether's $68 billion backing is being called into question as new reports seek to uncover the truth behind USDT.

Tether (USDT), the biggest stablecoin cryptocurrency, has lately gotten a lot of negative press. Allegations have surfaced once again that the stablecoin's reserves, which are meant to be backed one to one by USD, are actually backed by questionable assets that do not equal to US dollars.

A Bloomberg story recently shed light on the issue. Tether was accused of not having adequate reserves to support its stablecoin supply, according to a Bloomberg article authored by Zeke Faux. It accused Tether's Chief Financial Officer, Giancarlo Devasini, of misusing the company's reserves to make investments. Worryingly, it claimed that Tether was investing in Chinese companies and providing crypto-backed loans "worth billions of dollars."

"Tether has yet to reveal where it keeps its money." If Devasini is willing to take enough risk to make even a 1% return on Tether's total reserves, he and his partners would win $690 million each year. "However, if even a tiny proportion of those loans fail, one Tether will be worth less than $1," Faux wrote.

The report has sparked a fresh round of outrage among cryptocurrency market players. A CoinDesk article went on to investigate the ramifications of Tether being an intricate fraud on the crypto market. David Z. Morris' article highlighted similarities between the present issue with Tether and the financial catastrophe that hit Iceland in 2008 and 2009. Iceland's economy was affected harder by the financial crisis than most other countries due to banks' inability to be open in their operations and stock manipulation.

The report cautions that Tether, which has a market value of more than $68 billion, is "mimicking the leverage technique that enabled Iceland's small banks to appear big" by not being fully open about its reserves backing.

Meanwhile, Tether has issued a rebuttal to Bloomberg's story, rejecting all of its allegations. According to their reaction, the piece does nothing except create a misleading narrative.

"This post does nothing more than try to propagate a false and aging narrative arc about Tether that is based on hearsay and disinformation provided by unhappy people who have no connection with or direct knowledge of the business's activities." It's just another old effort to destabilize a market leader whose record of innovation, liquidity, and success speaks for itself."

They finish their answer by stating once again that Tether coins are completely supported.

"The business has taken a leading stance in transparency, issuing quarterly assurance attestations (as recently as the goal date of June 30, 2021) verifying that all Tether tokens are properly backed," according to the statement.

However, market sentiment for Tether remains negative as the accusations that have been a recurrent subject become more difficult for the stablecoin to shrug off.

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