Tether Set Straight on Speculated Ties with Signature Bank

Rumors and Response

After a stirring exposé in Bloomberg suggesting a financial link between Tether and the now-defunct Signature Bank, the crypto world buzzed with speculation. However, Tether was quick to counter these claims, sending out a clarifying email to media outlets, including Cointelegraph, insisting on their lack of exposure to the bank in question.

The Clarification

Tether’s official response managed to shine a light on the original article, which allegedly failed to clarify that no account was set up between the two companies. As they put it, they wanted to “unequivocally reiterate” their complete detachment from not just Signature Bank but also Silvergate and Silicon Valley Bank.

What the Rumors Explained

The initial claims suggested that Tether was leveraging Signature Bank’s Signet service to funnel U.S. dollars through its Bahamian partner, Capital Union Bank. You’d think Tether was trying to find a secret passage into the U.S. banking system, perhaps wearing a trench coat and a fedora. But alas, Tether’s CTO, Paolo Ardoino, has taken to social media to clear the air—twice! Talk about going full detective!

CTO’s Reassurances

On several occasions leading up to the Bloomberg article, Ardoino publicly emphasized Tether’s independence from these banks. On March 12, he tweeted that they had zero exposure to Signature Bank, with prior tweets on March 2 and 10 disavowing ties to Silvergate and Silicon Valley Bank.

Tether’s Financial Resilience

At the recent Paris Blockchain Week 2023, Ardoino took the stage to discuss Tether’s financial standing. Among his revelations was the assertion that Tether boasts around $1.7 billion in excess reserves—a cushion of cash that would make any accountant nod in approval. He even went as far as to describe Tether (USDT) as one of the safest assets to hold in this volatile economic atmosphere.

In the Face of Allegations

This recent flurry of deflection comes hot on the heels of a March 3 report from The Wall Street Journal, accusing Tether of “stale allegations” involving faked documents to secure bank accounts. It seems Tether has more than financial stakes; they’ve got a reputation to safeguard too!