- Cyber Capital founder critiques Tether, calls the stablecoin a $118 billion scam bigger than FTX and Bernie Madoff.
- The executive gives an insight into the governance of Tether and notes the disclosures following recent investment in Adecoagro.
- USDT holds steady, maintains its $1 peg on Sunday.
Founder of Cyber Capital, Europe’s oldest crypto fund, criticized Tether for their reserves and said there has been no audit since 2021. In a tweet thread on X, Justin Bons supports his stance on the stablecoin firm with statistics.
USDT held steady at 1USD per token.
Cyber Capital founder calls out Tether for audits and proof of reserves
Tether, the largest stablecoin issuer faced criticism from Justin Bons, founder of Cyber Capital, one of Europe’s oldest crypto funds. Bons labels Tether a “118 billion dollar scam, bigger than FTX & Bernie Madoff combined!”
Bons says there has been no proof of reserves or audit and the stablecoin firm is “printing counterfeit money.”
1/17) Tether is a 118 billion dollar scam; bigger than FTX & Bernie Madoff combined!
— Justin Bons (@Justin_Bons) September 14, 2024
No proof of reserves & an audit has never been done; USDT is printing counterfeit money (fraud)
Caught falsifying documents, obscuring identities & lying about reserves
Stop using USDT now!
Advocacy firm slams Tether, criticizes USDT issuer
Consumers’ Research, an advocacy organization recently raised concerns on Tether and slammed the stablecoin issuer for exposing USDT users to significant risks, owing to their business model.
Even as these concerns surface, Tether continues to serve as fiat on/off ramp for users across most crypto exchanges worldwide. The USDT issuer has emerged as one of the most profitable firms.
Tether reported $12.72 billion in net profit since Q4 2022. This marks a higher profit than asset management giant BlackRock.
FXStreet reached out to Tether for comments, watch this space for updates.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Crypto market wipes out $1 billion in liquidation as Asian markets bleed red
The crypto markets continue to decline on Monday, with Bitcoin (BTC) falling below $78,000. The Asian markets also traded in the red, with Japan’s stock market extending losses to 8.5%, its lowest level since October 2023.
XRP Price Prediction: XRP hangs on a loose thread, deeper correction below $2 impending?
Ripple (XRP) is extending losses below the previous week’s critical level at $2.00, as United States (US) President Donald Trump doubled down on tariffs, stressing that America must solve the trade deficit before making a deal.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC and XRP head to yearly lows while ETH hits two-year bottom
Bitcoin (BTC) price hovers around $78,600 on Monday after falling nearly 5% the previous week. Ethereum (ETH) and Ripple (XRP) also followed in BTC’s footsteps and declined 13% and 10%, respectively, in the previous week.
Bitcoin could be the winner in the ongoing trade war after showing signs of decoupling from stocks
Bitcoin (BTC) traded above $84,000 on Friday, showing strength despite the stock market experiencing significant declines. The market reaction stems from United States (US) President Donald Trump's clash with the Federal Reserve Chairman Jerome Powell over interest rate decisions.
Bitcoin Weekly Forecast: Tariff ‘Liberation Day’ sparks liquidation in crypto market
Bitcoin (BTC) price remains under selling pressure and trades near $84,000 when writing on Friday after a rejection from a key resistance level earlier this week.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.