Tether may be a financial scam, says Justin Bones

Cyber ​​Capital founder Justin Bones explained such a serious accusation by the fact that USDT dominance in the stablecoin industry has reached 75%. The crypto expert admitted that Tether may be an even bigger scam than the collapsed FTX. Bones also claims that the company has an opaque and completely centralized management model.

“Tether is one of the biggest existential threats to the crypto industry as a whole. How are we supposed to believe they hold $118 billion in collateral without proof? And this is after the CFTC already fined Tether for lying about their reserves,” the crypto enthusiast noted.

Bones recalled that Tether had previously hired third-party auditors to audit its own reserves. But the contract with the contractors was terminated, as it demonstrated that the crypto firm’s reserves were commercial papers of unknown origin.

Intergovernmental blockchain expert Andy Lian, on the contrary, believes that Tether is a big enough project to suddenly go bankrupt. And IDA Finance co-founder Sean Lee recalled that FTX collapsed due to the inability to process significant withdrawals of user funds. At the same time, Tether allowed the withdrawal of clients’ assets in USDT for $16 billion without obvious difficulties.