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Recent statements from purported Tether spokesperson have reignited debates and speculations surrounding stablecoin issuer’s lending practices, seemingly confirming theories that have circulated within cryptocurrency community<\/p>\n<\/div>\n<\/div>\n
Recent comments by a Tether spokesperson have rekindled controversy<\/a> and speculation surrounding the company’s financial activities, particularly concerning its lending practices.<\/p>\n These comments appear to confirm<\/a> longstanding conspiracy theories about the stablecoin issuer.<\/p>\n A recent Wall Street Journal piece<\/a> by Jonathan Weil delves into Tether’s latest quarterly financial update, revealing a significant uptick in loans, despite previous assertions from the company that it would curtail such practices. The cryptocurrency issuer reportedly resumed lending its stablecoins, disclosing $5.5 billion in loans as of June 30, up from $5.3 billion the previous quarter.<\/p>\n Alex Welch, identified as a Tether Holdings spokeswoman, confirmed the company’s reengagement in lending, marking a shift from its December 2022 announcement that it would phase out its secured loans during 2023. Welch stated that Tether<\/a> made these loans to “prevent any significant depletion of our customers’ liquidity or the need for them to sell their collateral at potentially unfavorable prices,” suggesting a protective stance toward its borrowers and the broader crypto ecosystem.\u00a0<\/p>\n Tether’s borrowers, primarily major crypto investors, leverage these loans to secure financing against their crypto collateral, potentially mitigating market impacts, like asset price drops due to forced liquidations.\u00a0<\/p>\nUnstable claims\u00a0<\/h2>\n
Tether’s retort<\/h2>\n