Do you know that Tether refused to help FTX during crisis. Let’s discuss in details what actually happened.
Since the crypto exchange FTX filed for Chapter 11 bankruptcy almost two months ago, dark details about what happened during the crisis keep coming up. The latest report from Forbes says that disgraced FTX founder Sam Bankman-Fried called USDT stablecoin issuer Tether right before FTX filed for bankruptcy.
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We know that SBF tried to reach out to everyone they could to stop the FTX ship from sinking. Even Binance dropped out of the deal in less than 24 hours, even though it had helped at first. The CTO of Tether, Paolo Ardoino, said that when SBF saw his empire fall apart in front of his eyes, he asked Tether for money. Even though SBF didn’t say how much he wanted, the USDT-issuer “categorically refused” to give it to him.
Ardoino said that there was clearly something wrong with the request, so it was easy to say no.
CTO of Tether Said
In a conversation with Forbes, the CTO of Tether said, “He asked for something he had never asked for before, and it wasn’t $10 million.” The way he talked made it sound like he had a big problem. His request was for a lot of money.
Early in November, SBF was making desperate phone calls to try to stop FTX from falling apart, but it didn’t work.
Tether, the company that makes the USDT stable coin, has been in a lot of trouble because of its $66 billion reserves. Tether’s USDT stablecoins still make up more than half of all Bitcoin trades around the world.
Even though Tether has been looked at more than once, it has stayed strong through times of market volatility and crypto winters. They have stayed in business through some of the biggest market crashes of the past year, 2022, while meeting the needs for liquidity.
During the collapse of Terra LUNA, investors who had bought USDT had to pay back $16 billion because they were scared. During the collapse of FTX, they had to deal with $3 billion in redemptions. Both times, Tether took care of things in a strong way.
Crypto exchange FTX
One of Tether’s most important partners was the crypto exchange FTX. But unlike SBF, which was always doing things behind the scenes and working with politicians, Tether has been able to avoid regulatory scrutiny. But a big question on the minds of crypto investors is why the stablecoin issuer doesn’t publish the USDT reserves report.
Source: Google Trend