Alameda Research and Cumberland acquired 70% of USDT, with Alameda leading with $36.7 billion and Cumberland following with $23.7 billion.
According to a recent report from Protos, two prominent market makers in the cryptocurrency industry, Alameda Research and Cumberland, have acquired a significant portion of Tether (USDT). The firms have bought back an impressive 70% of the total USDT issued by Tether, the entity behind the stable digital token, since its launch in 2014.
Alameda Research leads with $36.7 billion
Reports indicate that Alameda Research, a cryptocurrency trading firm founded by billionaire Sam Bankman-Fried and owner of the FTX exchange, has become the largest buyer of USDT. They have received a staggering 36.7 billion USDT from Tether’s vaults over the past seven years.
Interestingly, a large portion of this (about 86%, or 31.7 billion USDT) was acquired in the last year, indicating a significant increase in demand for this stablecoin. In addition, the report also shows the journey of these USDT funds from Alameda Research to various cryptocurrency exchanges.
Notably, FTX emerged as the main recipient, receiving over $30.1 billion in USDT from Alameda Research. Other notable exchanges that also received USDT from the company include Binance, Huobi, and OKEx.
Cumberland followed closely behind, raising $23.7 billion
Cumberland, the cryptocurrency trading arm of global market maker DRW Holdings, is reportedly the second-largest buyer of USDT. Cumberland has acquired $23.7 billion in USDT from Tether’s vaults since 2014. A large portion of this acquisition, specifically 74%, or 17.6 billion USDT, occurred last year alone.
The report highlights that Cumberland has established a close partnership with Binance, the world's largest cryptocurrency exchange by trading volume, as its main source of liquidity and market making. Over time, Binance received 79% from Cumberland, equivalent to 18.7 billion USDT. Other exchanges such as Poloniex, Bitfinex, Huobi, OKEx, etc. also received USDT from Cumberland.
Tether faces regulatory scrutiny and media criticism
Tether, which has a market capitalization of over $74.44 billion, is currently under scrutiny from regulators and the media due to concerns about its transparency and compliance. In recent months, Tether has faced a $41 million fine from the U.S. Commodity Futures Trading Commission (CFTC) for violating the Commodity Exchange Act by making false statements about its reserves backing USDT.
Additionally, Bloomberg accused Tether of running a Ponzi scheme, saying it used its reserves to provide billions of dollars in short-term loans to Chinese companies.
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