Coinbase Director Uncovers Alarming Tether Activity at FTX
Conor Grogan, Director of Coinbase, has brought to light concerning activities involving FTX and its affiliate, Alameda Research, in connection with the creation of Tether's USDT stablecoin.
Based on blockchain data, Alameda is shown to have generated about $39.55 billion of USDT, equivalent to 47% of Tether’s current circulating supply. An earlier estimate by Protoss pegged it at $36.7 billion, but Conor updated this figure after uncovering more wallets.
This raises suspicions of dubious transactions between Alameda and FTX, which involve using customer deposits to offset losses and engage in trading. This is concerning, given Alameda’s questionable reputation and the absence of an independent Tether audit.
Data shared by SBF reveals that Alameda created more USDT than the assets it managed during the cryptocurrency market’s peak. Assessing redemptions is challenging due to Tether’s off-chain burn coordination.
Assuming that all USDT redemptions from FTX came from Alameda, approximately 3.9 billion USDT were redeemed, primarily over a two-day period in May during the Luna market turmoil.
These revelations coincide with the ongoing fraud trial of Sam Bankman-Fried, the disgraced FTX founder, with Caroline Ellison, expected to testify and potentially unveil more insights into FTX and Alameda’s inner workings.
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Tether has discreetly resumed lending its USDT stablecoins in another development after a year-long suspension of secured loans. Tether is extending loans to long-standing customers to protect them from liquidity shortages or the need to sell assets at unfavorable rates.
Tether has ventured into the artificial intelligence sector, acquiring an undisclosed stake in German-based crypto mining firm Northern Data Group.
The total supply of Tether USDT stablecoins held on exchanges has reached a multi-month high, indicating increased purchasing power among cryptocurrency traders.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
