Each Tether (USDT) May Not Be Backed By 100 Percent Fiat

Tether Limited, the firm behind Tether (USDT), is not short of controversy. Formed by Broke Pierce, a former actor and a crypto investors and enthusiast, the company has the backing of venture capitalists and has links with BitFinex.

Early last year, it was subpoenaed by the US DoJ and months later, users at BitFinex experienced withdrawal problems. It was later revealed that Tether were struggling to find willing bankers and it was only when USDT prices slumped to around 85 cents apiece, effectively decoupling when they scrambled and Deltec Bank came to their rescue, re-enabling liquidity.

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