Hindenburg Research, the investigative firm, has offered a $1 million reward for disclosure of previously unknown information about the collateral backing the stablecoin Tether (USDT).
We have doubts about the legitimacy of Tether, so today we announce the Hindenburg Tether Bounty Program, a reward of up to $1,000,000 for details on Tether’s backing.
— Hindenburg Research (@HindenburgRes) October 19, 2021
The company described Tether as a ‘key element of the multi-trillion-dollar cryptocurrency market,’ but questioned the legitimacy of its collateral.
‘Despite numerous regulatory sanctions due to doubts about the veracity of disclosed collateral information and a market capitalization of $70 billion, Tether continues to refuse to provide transparency of its assets,’ the statement said.
According to Hindenburg Research, Tether claims to hold a substantial portion of its assets in commercial paper but does not disclose information about counterparties.
‘We believe that Tether should fully and thoroughly disclose its assets to the public,’ said Nathan Anderson, founder of Hindenburg Research.
The company noted that it does not hold long or short positions in Bitcoin, USDT or other cryptocurrencies.
Earlier Bloomberg discovered bonds of Chinese companies in Tether’s reserves.
Earlier, in October, the U.S. Commodity Futures Trading Commission ordered Tether and Bitfinex to pay penalties of $42.5 million.
In September, SEC Chair Gary Gensler called stablecoins poker chips in the cryptocurrency casino.
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