Hindenburg Research gives $1M award for USDT collateral information

by in Cryptocurrency News


Research firm Hindenburg Research has offered a $ 1 million reward for disclosing previously unknown collateral for the Tether (USDT) stablecoin.

The company called Tether “a key element of the multi-trillion dollar cryptocurrency market,” but questioned the legitimacy of providing it.

“Despite numerous regulatory sanctions due to doubts about the veracity of disclosures on collateral and a $ 70 billion market capitalization, Tether still refuses to provide transparency on its assets,” it said in a statement.

According to a message from Hindenburg Research, Tether claims to keep a significant part of its assets in the commercial paper but does not disclose information about counterparties.

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“We are convinced that Tether must fully and thoroughly disclose its assets to the public,” said Nathan Anderson, founder of Hindenburg Research. The company clarified that it does not hold long or short positions in Bitcoin, USDT, or any other cryptocurrency.

Earlier, Bloomberg journalists found bonds of companies from the PRC in the reserves of Tether.

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Recall that in October, the US Exchange Commodity Commission obliged Tether and Bitfinex to pay fines of $ 42.5 million.

In September, the head of the US Securities and Exchange Commission, Gary Gensler, named stablecoins as poker chips for cryptocurrency casinos.