Market Analysis Report (06 Mar 2023)

Leading stablecoin issuer Tether has reportedly used shadowy intermediaries, falsified documents, and shell companies to regain access to the traditional banking system.´

According to a report from the Wall Street Journal, one of the intermediaries, a major USDT trader in China, attempted to “circumvent the banking system by providing fake sales invoices and contracts for each deposit and withdrawal.”

The report also points to other entities, including “shadow bank” Crypto Capital Corp and a company called “Deniz Royal Dis Ticaret Limited Sirketi,” which were used for Tether to access the banking system.

Ultimately, it says, both Tether and Bitfinex were “able to open at least nine new bank accounts for shell companies in Asia over nine days in October 2018.”

 Tether’s Chief Technology Officer, Paolo Ardoino, has said the report contained a “ton of misinformation and inaccuracies,” without giving specifics. In a statement, Tether said the report was “wholly inaccurate and misleading,” and said both Tether and Bitfinex have “world-class compliance programs” and that they adhere to legal requirements.

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• Source: https://www.cryptocompare.com/email-updates/daily/2023/mar/06/