Tether’s $5B mint and political entanglements raise suspicion about industry
Tether has recently minted $5 billion in a rapid influx over three days, stirring reactions within financial and crypto sectors. This minting coincided with notable market movements, increasing Tether's market cap to approximately $124 billion. The operations have been closely linked to Howard Lutnick, CEO of Cantor Fitzgerald and a member of Trump’s transition team, who has been vocal in support of Tether while facing scrutiny over the firm’s opaque practices regarding reserve transparency. Investigations from the US Attorney's Office have raised concerns about Tether’s dealings, including allegations of terrorism financing. Despite assurances from Lutnick about Tether’s reserves, critics demand greater transparency to build trust. Some argue that periodic attestations from BDO Italia provide sufficient proof, while others highlight potential governance issues stemming from Tether’s business structure and their strategic investments. The controversy surrounding Tether reflects broader concerns about the intersection of political influence and the stablecoin's market dominance, with regulatory scrutiny becoming increasingly relevant as Tether navigates its expanding role in the crypto ecosystem.
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