Tether is a Bigger Fraud than FTX, Says Cyber Capital Founder
Justin Bons, founder of Cyber Capital, has harshly criticized Tether, calling it a major threat to the cryptocurrency industry and labeling it a $118 billion scam, even greater than the scandals of FTX and Bernie Madoff.
On social media, Bons has accused Tether of being the largest fraud in crypto, urging investors to avoid its USDT token due to the company’s lack of a formal audit and issues with document falsification.
He also claims that Tether’s reported $118 billion in collateral is dubious and has been fined by the CFTC for misleading reserve statements.
Bons further questions the validity of Tether’s 2021 auditor’s report and suggests that the company’s team size might be exaggerated. He noted inconsistencies in their staff list, implying a much smaller workforce.
READ MORE: SEC Signals Possible Easing of Bank Crypto Custody Rules
In a recent legal battle, Celsius Network Ltd. sued Tether for over $3.5 billion, alleging fraud related to Bitcoin transactions during the 2022 market downturn. Tether’s CEO has dismissed these accusations as baseless.
Bons also criticized Tether’s founders for connections to illegal schemes and Crypto Capital, an offshore bank with organized crime ties. In 2021, Tether settled a $41 million fine with the CFTC over a reported $850 million loss involving mixed funds.
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.
