With SBF staying in a Bahamas prison until the extradition hearing on February 8, the FTX incident may have come to an end temporarily, but Bloomberg immediately pointed its finger at the eternal unexploded bomb Tether. It quoted people familiar with the matter as saying that multiple hedge funds have Holding a short USDT position and waiting to be cashed out, Tether also responded vigorously.

Tether crisis?

Bloomberg quoted people familiar with the matter and made the following points to illustrate the potential crisis of USDT:

1. Hedge funds prepare to attack USDT

Including Fir Tree Capital Management and Viceroy Research, they have held short USDT orders for several months, waiting to be cashed out.

Valiant is considering shorting USDT again after the beginning of the year.

Andrew Left, founder of Citron Research, said he had not found the right trading tool.

Representatives for Fir Tree, Viceroy, Valiant and Coatue declined to respond.

2. The U.S. Department of Justice is also investigating Tether

The report mentioned that the U.S. Department of Justice has been pursuing Tether and is also responsible for the prosecutor in charge of the SBF case, Damian Williams.

3. Audit reserves and other concerns

  • Tether misappropriated funds in 2018 to compensate the Panamanian entity Crypto Capital Corp. for reserve losses (except for the Bitfinex announcement, the Bloomberg article and the New York Attorney General's Office announcement have been deleted).

  • Unaudited, with only quarterly transparency updates, it is shut out by the Big Four accounting firms.

  • Tether Chief Financial Officer Giancarlo Devasini started his career as an orthopedic surgeon.

Tether fights back

Tether pointed out in the announcement that Bloomberg intends to extend the FTX crisis to Tether, but they can see from the report that Bloomberg’s inexperienced editorial team is unconsciously (or intentionally) becoming a manipulation tool for short sellers.

Tether emphasized that when lending institutions such as Genesis, BlockFi, Voyager, and Celsius have defaulted, if they really intend to short USDT, the funds they can borrow will be less and less, because everyone wants to keep their USDT rather than lend it to them. Speculative third parties.

Tether finally mentioned:

While this may be news to some journalists new to covering the crypto industry, shorting Tether is an organized business activity that has spanned nearly a decade and has experienced multiple failures.

This article Bloomberg: Hedge funds have held short positions in USDT for several months; Tether calls out Bloomberg rookie reporter: USDT has been FUD for almost ten years. First appeared on Chain News ABMedia.