The delist Tether campaign was launched on Twitter a few hours after the New York Attorney General (NYAG) implicated the stablecoin and Bitfinex in a mega cover-up of lost funds.
According to the NYAG, Bitfinex, a cryptocurrency exchange, lost approximately 850 million U.S dollars without disclosing the loss to the affected clients. But since the exchange and the stablecoin have the same operator, iFinex, 600 million U.S dollars was scooped from Tether’s reserves to patch a section of the 850 million U.S dollars hole.
That was not all. Tether’s general counsel, Stuart Hoegner, disclosed in an affidavit that Tether is 74 percent back with fiat and equivalents. In March, the 1:1 USD backing claims by Tether Ltd were altered on its website to include that it’s not a must for Tether be backed 100 percent with fiat.
The AG’s claims stirred the cryptocurrency community to start requesting major exchanges to delist Tether.
A Twitter user, AlexCobb_ tweeted:
Firing auditors, reserves no longer are backed 100% by the USD. They can print more Tether whenever they want. Is this really what we want in the crypto space?? Purge the bad apples.
Some on social media called upon the CEO of Binance, the leading virtual currency exchange, to be the first to show delist Tether. “Why doesn’t Binance delist Tether? Is it not a bigger scam than BSV? “ A Twitter user noted. Tweets asking the Binance CEO to delist Tether are seen to be in reference to the recent move by the CEO to delist BSV after its biggest supporter, Craig Wright, was involved in questionable acts.
The CEO of Coinbase, Brian Armstrong, has propelled the delist Tether campaign to new heights. In a tweet, Armstrong said:
With the confirmation that Tether is not fully collateralized, my hope is that the industry graduates to more trustworthy stablecoins.
However, at the time of writing, no exchange has delisted Tether.
Do think the recent controversy warrants Tether to be delisted?
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