Tether (cryptocurrency)

Tether
Denominations
Symbol	₮
Code	USD₮, EUR₮, CNH₮, XAU₮, MXN₮[1]
Development
White paper	Tether White Paper.pdf
Initial release	2014-10-06 16:39:15 UTC[2]
Valuation
Exchange rate	Pegged to reference fiat currency or gold
Website
Website	tether.to

Tether Holdings Limited is a blockchain company founded in 2014, best known for USD₮, a stablecoin designed to maintain a one-to-one peg with the U.S. dollar.¹ It is a U.S. dollar–pegged stablecoin used to reduce cryptocurrency volatility. Despite regulatory scrutiny and a temporary 2022 de-peg, it remains the largest stablecoin and has expanded into technology ventures beyond digital currencies, including artificial intelligence and data infrastructure.²

As of September 30, 2025, Tether reported total assets of $181.2 billion against liabilities of $174.4 billion, with 77.23% held in cash and cash equivalents, according to quarterly reserves reports audited by BDO Italia.³

In October 2025, Tether International reported net profits exceeding $10 billion for the year, according to its Q3 2025 attestation prepared by BDO as of September 30. During the quarter, Tether’s exposure to the U.S. Treasuries reached approximately $135 billion, ranking it among the largest global holders, while USDT supply exceeded $174 billion. Tether also reported diversified reserves including gold and Bitcoin, excess reserves of $6.8 billion, and continued expansion despite legal settlements and regulatory scrutiny.⁴

Tether is one of the earliest and largest stablecoins, widely used by cryptocurrency investors. In 2022, it reached a market capitalization of nearly $70 billion, while Tether also issued stablecoins pegged to other currencies and gold.₅

In 2019, Tether (USDT) surpassed Bitcoin to become the most traded cryptocurrency globally, recording the highest daily and monthly trading volumes. It grew rapidly from 2019–2024, surpassing Bitcoin in trading volume and expanding across blockchains. Despite regulatory scrutiny and CFTC fines, it issued stablecoins for multiple currencies, including

Mexican peso. By 2024, Tether held over $97 billion in U.S. Treasuries, reported $5.2 billion profit, and expanded into Bitcoin mining, AI, and renewable energy.⁶

As of 2025, Tether (USDT) supports 13 active blockchain protocols, including Ethereum, Avalanche, Cosmos, Celo, Kaia, Tron, Liquid, Solana, Polkadot, Tezos, Near, Ton, and Aptos. Additionally, five legacy protocols such as Algorand, EOSIO, Kusama, Omni, and SLP are maintained for historical reference.⁷ Tether Operations, S.A. de C.V., “Supported Protocols and Integration Guidelines”, However, Tether (USDT) has faced allegations of money laundering and financial misconduct, though the company maintains compliance with regulations and emphasizes transparency and oversight in its operations.⁸

CFI Education Inc, “Tether”, Achieved

Investopedia, “What Is Tether (USDT)? Understanding Its Importance and Uses”, Achieved, Achieved, Retrieved August 2025

Tether Operations, S.A. de C.V., “Transparency Report”, Archived

Yahoo Finance, “Tether Surpasses $10B Net Profit in 2025, Expands US Treasuries Holdings”, Achieved, Retrieved October 2025

CFI Education Inc, “Tether”, Achieved

History

Creation

Tether (USDT) originated from a 2012 white paper by J.R. Willett, which proposed creating new cryptocurrencies on the Bitcoin blockchain. Willett helped implement this concept in Mastercoin, supported by the Mastercoin Foundation, later renamed Omni Foundation. The Mastercoin protocol later became the technological basis for Tether. Brock Pierce, an original member of the Mastercoin Foundation, co-founded Tether, while Craig Sellars, Tether’s founder, served as CTO of the Mastercoin Foundation.

The precursor to Tether, originally called Realcoin, was announced in July 2014 by co-founders Brock Pierce, Reeve Collins, and Craig Sellars as a Santa Monica-based startup. The project issued its first tokens on the Bitcoin blockchain using the Omni Layer Protocol in October 2014, soon rebranding as Tether. Initially, three stablecoins were planned: USTether, EuroTether, and YenTether, with USTether becoming the most widely used.

The first USDT tokens were issued on 6 October 2014 through the Omni Layer on the Bitcoin blockchain. Since its launch, USDT has expanded to 14 different blockchain networks. Realcoin utilized Bitcoin’s infrastructure to enable decentralized asset transfers and contract execution. The project partnered with banks, cryptocurrency exchanges, and ATM providers to facilitate the global buying, trading, and redemption of tokens.

On 20 November 2014, CEO Reeve Collins announced that Realcoin was rebranded as Tether. Trading commenced on Bitfinex in January 2015. By June 2021, the Federal Reserve flagged Tether as a potential financial stability risk, highlighting its growing influence within the global cryptocurrency market.

Tether Holdings Limited was incorporated in the British Virgin Islands on 5 September 2014, owning Tether Operations Limited, Tether Limited, and Tether International Limited. Tether Limited was incorporated in Hong Kong on 8 September 2014, operating tether.to until 15 March 2017, and is registered with FinCEN as a Money Services Business. Tether Operations Limited and Tether International Limited were incorporated in the British Virgin Islands on 15 March 2017 and currently operate tether.to, but none have been registered with the U.S. Securities and Exchange Commission.

In July 2022, Tether began publishing quarterly attestations of its reserves, conducted by the accounting firm BDO Italia, to provide transparency regarding the backing of its tokens. [1] According to The Wall Street Journal, Tether has promised investors audits since at least 2017 but has not completed a full audit. Its quarterly attestations provide only snapshots of assets at a specific time and are considered less rigorous than formal audits.

Sun Crypto, “Tether”, Achieved

Tether Operations, S.A. de C.V., “Supported Protocols and Integration Guidelines”, Achieved

Investing.Com, “USDT (Tether) linked to money laundering in Southeast Asia, UN reports”, Achieved, Retrieved January 2024

Itez, “Tether USDT turns 9 years old”, Achieved, Retrieved October 2023

Bitcoin Suisse, “What is Tether?”, Achieved, Retrieved May 2020

Trading View, “Tether USDT Turns 8 – a History of FUD, Regulation and Growth”, Achieved, Retrieved October 2022

Sovereign Wealth Fund Institute, “EXPLAINER: What is Tether and USDT?”, Achieved, Retrieved July 2021

Commodity Futures and Trading Commission, “Order instituting proceedings pursuant to section 6(c) and (d) of the commodity exchange act, making findings, and imposing remedial sanctions”, Achieved, Retrieved October 2021

The Block, “Tether partners with top 5 accounting firm BDO for reserve attestations”, Achieved, Retrieved August 2022

The Wall Street Journal, “Biggest Stablecoin Issuer, Tether, Switches Accounting Firm to BDO Italia”, Achieved, Retrieved August 2022

2015–2016: History of Bitfinex and Tether (2015–2016)

In January 2015, Bitfinex added USD Tether (USDT) to its platform, offering traders a stable, US dollar–pegged alternative amid cryptocurrency market volatility and growing demand for stablecoins.

In 2018, Phil Potter, chief strategy officer of Bitfinex, resigned following the Paradise Papers revelations in November 2017, which identified Potter and Giancarlo Devasini as involved in establishing Tether Holdings Limited in the British Virgin Islands in 2014. In 2022, the Financial Times reported that Giancarlo Devasini and Jan Ludovicus van der Velde founded Bitfinex in 2012 and Tether in 2014. Tether Limited operates as a wholly owned subsidiary of Tether Holdings Limited, based in the British Virgin Islands.

For a brief period, Tether processed United States dollar transactions via Taiwanese banks, which collaborated with Wells Fargo to facilitate the transfer of funds internationally.[2]

On March 31, 2017, Wells Fargo, the last bank processing Bitfinex transactions, ceased all services to Bitfinex and Tether. Bitfinex was not a direct customer but used four Taiwanese banks that relied on Wells Fargo as a correspondent bank. By April 2017, Bitfinex resolved debts from the August 2016 hack by redeeming BFX tokens and filed a brief lawsuit against Wells Fargo seeking damages, which was later voluntarily dismissed. Throughout 2017, concerns arose over Tether issuance, banking restrictions, and market transparency. Leaked Paradise Papers in November revealed shared management between Bitfinex and Tether, contradicting prior claims of independent operations.[3]

Tether currently comprises five distinct tokens. These include United States dollar Tether (USD₮) and Euro Tether (EUR₮) issued on Bitcoin’s Omni Layer, USD₮ and EUR₮ as ERC-20 tokens on the Ethereum blockchain, and, introduced in 2020, USD₮ as a TRC-20 token on the TRON network.

In August 2024, Tether announced the launch of a stablecoin pegged to the United Arab Emirates dirham (AED₮). The dirham, similar to several other currencies in the Gulf region, is pegged to the United States dollar.

2017–2018: Expansion and Controversies of Tether

Tether’s (USDT) circulating supply grew from $10 million in January 2017 to nearly $2.8 billion by September 2018. In 2019, the New York Attorney General sued Tether and Bitfinex over reserve misappropriation, resulting in an $18.5 million settlement in 2021.

By early 2018, approximately 10% of Tether trading volume involved cryptocurrency, rising to 80% by summer. In August, over $500 million USDT were issued, but in October, its value fell to $0.88 amid credit risk concerns. On 15 October 2018, the price of Tether briefly fell to $0.88 due to perceived credit risk, as traders on Bitfinex exchanged Tether for Bitcoin, temporarily driving the price below its $1 peg.

In late 2018, Tether Holdings and affiliated companies reportedly used shell companies, falsified documents, and intermediaries to maintain banking access. A major Tether trader in China allegedly provided fake invoices and contracts to process deposits and withdrawals. [4]

Later, Tether issued a statement describing the report as "wholly inaccurate and misleading," though the company did not specify which details were incorrect or provide evidence to support its claims.

2019–2023: Growth, Regulatory Scrutiny, and Expansion of Tether

In 2019, Tether became the most traded cryptocurrency worldwide, achieving the highest daily and monthly trading volumes. The New York Attorney General investigated Bitfinex for allegedly using Tether reserves to cover $850 million in losses, raising transparency concerns. Despite regulatory scrutiny, Tether expanded across blockchains like Tron and EOS, solidifying its position as the dominant stablecoin and key trading pair in the cryptocurrency ecosystem. [5]

By July 2021, Tether is tied to half of all bitcoin trades. In 2021, the Commodity Futures Trading Commission (CFTC) fined Tether for maintaining full reserves on only 27.6% of days during the period from 2016 to 2018, highlighting concerns over the stablecoin’s backing and transparency. In May 2022, Tether introduced the MXNT token, pegged to the Mexican peso, positioning it as a "testing ground" for the company’s stablecoin adoption and expansion within Latin American markets. In 2022, Tether maintained stability while several prominent cryptocurrency and banking firms collapsed. Its closest competitor, Circle, experienced slowed growth, with its $24 billion USDC circulation valued at just over a quarter of Tether's holdings.

In October 2023, Paolo Ardoino, previously Tether’s Chief Technology Officer, was appointed as the company’s Chief Executive Officer. He has led the company since December 2023, succeeding current CEO Jean-Louis van der Velde.

In October 2023, The Wall Street Journal reported that Tether had increasingly appeared in investigations related to money laundering, terrorism financing, and sanctions evasion. Research firm Elliptic subsequently disputed the report, stating it had collaborated with the newspaper to correct alleged misinterpretations regarding crypto fundraising by Hamas.

In response, Tether published a blog post denying any deficiencies in customer due diligence and screening practices. The company highlighted its cooperation with government authorities in criminal investigations, reporting that it had helped freeze $835 million in assets connected to theft. In December 2023, Tether reported that it had assisted over 140 law enforcement agencies across 45 jurisdictions in freezing $835 million linked to scams and other illicit activities. [6]

In May 2023, Tether announced plans to launch a Bitcoin mining operation in Uruguay using renewable energy, marking its first investment in the energy sector while supporting sustainable mining and expanding its treasury strategy.

Additionally, in June 2023, Tether Operations Limited engaged with government authorities and signed a memorandum with the Government of Georgia, establishing a special fund to support local startups and promote the development of blockchain technologies in the country.

In November 2023, Tether announced plans to invest approximately $500 million over six months to become a leading global Bitcoin miner. The investment includes funds from a $610 million credit facility previously extended to publicly traded Bitcoin mining company Northern Data AG, following Tether's acquisition of shares in the Frankfurt-based firm in September. [7] In December 2023, the city of Lugano, Switzerland, began accepting cryptocurrencies, including the Tether stablecoin, for the payment of taxes, fines, and other municipal invoices. [8]

According to blockchain analytics firm TRM Labs, Tether was the most used stablecoin for criminal activity in 2023, being linked to approximately $19.3 billion in illicit transactions. The figure was higher in 2022, with Tether connected to $24.7 billion in transactions associated with criminal activity.

2024: Profits, Investments, and Corporate Expansion of Tether

In January 2024, Cantor Fitzgerald CEO Howard Lutnick stated that the company was serving as custodian for Tether's reserves. In February 2024, during a Congressional hearing, Minnesota Congressman Tom Emmer, a cryptocurrency advocate, described The Wall Street Journal's October 2023 article as "erroneous," noting that federal reports indicated the actual use of cryptocurrency by criminal groups was significantly lower than media claims.

In the first quarter of 2024, Tether reported a profit of $4.52 billion, primarily driven by holdings in the U.S. Treasury securities, with additional gains from its investments in gold and Bitcoin.

In April 2024, Tether announced an investment of $200 million from its excess reserves into Blackrock NeuroTech, a U.S.-based company developing brain-computer interfacetechnologies, including neural implants that enable users to control computers and prosthetic devices without physical movement.

In April 2024, Tether announced a corporate reorganization to expand into broader digital asset sectors. The company established four divisions: Tether Finance for USDT management, Tether Power for bitcoin mining investments, Tether Data for technology and AI initiatives, and Tether Edu for educational programs. CEO Paolo Ardoino stated that this restructuring reflects Tether’s commitment to sustainable financial and technological empowerment.

In May 2024, Tether Holdings acquired a $100 million stake in US-listed Bitcoin miner Bitdeer, owned by Chinese billionaire Jihan Wu. The deal included a warrant to purchase additional shares and options for a further $50 million investment.

In July 2024, Tether partnered with Tron and blockchain analytics firm TRM Labs to form an alliance aimed at reducing illicit transactions and enhancing compliance across the Tether and Tron blockchain networks. By September 2024, the T3 Financial Crime Unit reported freezing approximately $12 million in USDT connected to scams and fraud, while identifying eleven victims associated with these illicit activities.

In August 2024, Tether reported a profit of $5.2 billion for the first half of the year, including a net operating profit of $1.3 billion recorded in the second quarter. In the second quarter of 2024, Tether became the third-largest purchaser of three-month U.S. Treasuries, holding $97.6 billion by June, surpassing Germany, the UAE, and Australia, making it the 18th largest U.S. Treasury bondholder. In October 2024, The Wall Street Journal reported that Tether became the subject of a federal criminal investigation concerning potential violations of sanctions and anti-money laundering regulations. On December 20, 2024, Tether, serving over 350 million users, announced a $775 million strategic investment in Rumble, including $250 million in cash and support for a tender offer of 70 million shares.

2025 – Present: Global Expansion, Investments, and Strategic Initiatives of Tether

On January 31, 2025, Tether launched its $140 billion USDT stablecoin on the Bitcoin and Lightning Networks, aiming to expand stablecoin use and support Bitcoin-based payments, remittances, and savings globally.

On January 14, 2025, Tether announced it would relocate its headquarters to El Salvador, following licensing as a digital asset service provider. CEO Paolo Ardoino and co-founders also plan to move, while most staff remain remote, with 100 Salvadorans to be hired.

In February 2025, Tether acquired a minority stake in Juventus, aiming to integrate its blockchain, digital assets, artificial intelligence, and biotech technologies into the club’s infrastructure, with the goal of transforming the global sports ecosystem. By October 2025, Tether formalized its partnership with Juventus by appointing an executive to the club’s board of directors, strengthening its influence and oversight in integrating blockchain and digital technologies within the organization[9].

In March 2025, Tether appointed new executives, with Giancarlo Devasini named Chairman and Simon McWilliams assuming the role of Chief Financial Officer (CFO), reflecting the company’s ongoing leadership restructuring. On March 6, 2025, Tether froze $28 million in USDT linked to the Russian-sanctioned exchange Garantex, raising market concerns about stablecoin freezes and highlighting challenges in on-chain compliance and fund security.

Through 2025, Tether invested in energy, commodities, and infrastructure. In June 2025, Tether acquired a 37.8% stake in Canadian gold royalty company Elemental Altus Royalties Corp, purchasing shares from La Mancha Investments, marking a major entry of cryptocurrency capital into the mining royalty sector.

In April 2025, Tether Investments S.A. de C.V. acquired a 70% controlling stake in Adecoagro S.A., a major sustainable production company in South America, through a tender offer for common shares at $12.41 each, reflecting Tether’s expansion into real-world infrastructure investments.

In mid-2025, Tether was reported to hold approximately $8 billion worth of gold in a secure vault in Switzerland, making it one of the largest private gold holders and part of its diversified reserve strategy for backing stablecoins.

USAT (stablecoin) is a US-based stablecoin by Tether, announced on 18 September 2025. GENIUS Act-compliant and led by CEO Bo Hines, it aims to compete with USDC domestically.

On 19 December 2025, Tether-owned AI firm Northern Data sold its bitcoin mining business, Peak Mining, for up to $200 million to companies controlled by Tether co-founder Giancarlo Devasini and CEO Paolo Ardoino, highlighting complex intercompany management and strategic asset transfers within the Tether corporate network.

On 10 November 2025, Tether committed $100 million in advertising to Rumble over two years, alongside $150 million in GPU services, supporting Rumble’s Northern Data AG acquisition and expanding crypto-industry collaborations.

Bitfinex, “Bitfinex: Celebrating Over a Decade of Supporting and Building on Bitcoin”, Achieved

Reuters, “Bitfinex chief strategy officer departs”, Achieved, Retrieved June 2018

Financial Times, “Tether-owned firm sells crypto miner to companies run by its founder”, Achieved, Retrieved 2022

Medium, “Tether: The least transparent or customer-centric Stablecoin”, Achieved, Retrieved March 2019

Bitcoin Magazine, “Warning Signs? A Timeline of Tether and Bitfinex Events”, Achieved, Retrieved February 2018

Tether Operations, “Tether to Develop UAE Dirham-Pegged Stablecoin”, Achieved, Retrieved August 2024

Margex, “What Is Tether (USDT)?”, Achieved, Retrieved December 2022

BTCBIT, “What is Tether Cryptocurrency?”, Achieved, Retrieved January 2020

SSRN, “Stablecoin Price Dynamics Under a Peg-Stabilising Mechanism”, Achieved, Retrieved November 2023

John Lothian News, “How Citadel harnessed the weather to claim hedge fund crown”, Achieved, Retrieved March 2023

Crypto.News, “Tether companies allegedly used fake documents to access banking services”, Achieved, Retrieved March 2023

Sun Crypto, “Tether”, Achieved

European Central Bank, “Stablecoins’ role in crypto and beyond: functions, risks and policy”, Achieved, Retrieved July 2022

Commodity Futures Trading Commission, “CFTC Orders Tether and Bitfinex to Pay Fines Totaling $42.5 Million”, Achieved, Retrieved October 2021

Tether Operations, “Tether Launches MXN₮ Tether Tokens Pegged to the Mexican Peso”, Achieved, Retrieved May 2022

Tether Operations, “Tether Appoints Paolo Ardoino as CEO”, Achieved, Retrieved October 2023 Elliptic, “Setting the record straight on crypto crowdfunding by Hamas”, Achieved, Retrieved October 2023

The Wall Street Journal, “From Hamas to North Korean Nukes, Cryptocurrency Tether Keeps Showing Up”, Achieved, Retrieved October 2023

Trading View, “Why Tether is acting more like a central bank than a stablecoin”, Achieved, Retrieved November 2025

CNBC, “Stablecoin giant Tether to mine bitcoin in Uruguay using renewable energy”, Achieved, Retrieved May 2023

Coin Market Cap, “Tether Signs MOU with Government of Georgia”, Achieved, Retrieved June 2023

Bloomberg, “Biggest Stablecoin Firm Tether Is Becoming a Major Bitcoin Miner”, Achieved, Retrieved November 2023

Bitcoin Suisse, “The City of Lugano now accepts the payment of taxes and other municipal services in Bitcoin (BTC) and Tether (USDT)”, Achieved, Retrieved December 2023

TRM Labs, “The Illicit Crypto Economy 2023”, Achieved, Retrieved March 2024

Ledger Insights, “Cantor Fitzgerald confirms it is custodian for Tether Treasuries”, Achieved, Retrieved December 2023

Fox Business, “Treasury deals blow to Elizabeth Warren’s anti-crypto crusade”, Achieved, Retrieved February 2024

Tether Operations, “Tether Releases Q1 2024 Attestation”, Achieved, Retrieved May 2024

Tether Operations, “Tether Takes Strategic Stake in Leading Brain-Computer-Interface Company Blackrock Neurotech”, Achieved, Retrieved April 2024

The Block, “Tether announces plan to reorganize into four new divisions”, Achieved, Retrieved April 2024

Bloomberg, “Tether Acquires $100 Million Stake in US-Listed Bitcoin Miner Bitdeer”, Achieved, Retrieved May 2024

The TRM Labs, “Category deep-dive: Overall 2024 figures and declining illicit crypto volume on TRON”, Achieved

Tether Operations, “Tether, TRON and TRM Labs Establish First-Ever Private Sector Financial Crime Unit to Combat Crypto Crime”, Achieved, Retrieved September 2024

The Block, “Tether reports net profit of $5.2B in H1 2024”, Achieved, Retrieved July 22024

The Wall Street Journal, “Federal Investigators Probe Cryptocurrency Firm Tether”, Achieved, Retrieved October 2024

Tether Operations, “Tether Announces $775 Million Strategic Investment in Rumble”, Achieved, Retrieved December 2024

Coin Desk, “Tether Brings Its $140B USDT Stablecoin to Bitcoin and Lightning Networks”, Achieved, Retrieved January 2025

Dig Watch, “Tether moves to El Salvador”, Achieved, Retrieved January 2025

Insider Sports, “Juventus stands firm against Tether’s majority takeover bid”, Achieved, Retrieved December 2025

Binance, “Tether Nominates Executives to Juventus Board Amid Governance Changes”, Achieved, Retrieved October 2025

Econbil, “Jeff Hummel on Tether”, Achieved, Retrieved December 2024 Yahoo Finance, “Tether Names Simon McWilliams as CFO Amid Push for Full Audit”, Achieved, Retrieved March 2025

Medium, “Repeatedly Sanctioned: What Has the Russian Exchange Garantex Done Over the Past Three Years?”, Achieved, Retrieved March 2025

Crux Investor, “Tether Acquires Controlling Stake in Elemental Altus, Signaling Major Crypto Capital Entry into Mining”, Achieved, Retrieved June 2025

Tether Operations, “Tether Acquires 70% Stake in Adecoagro”, Achieved, Retrieved April 2025

IFCCI, “Tether’s $8B Gold Reserves Stored in Secret Swiss Vault”, Achieved

FXC Intelligent, “Tether’s US stablecoin play: How all-American USAT could challenge USDC and beyond”, Achieved, Retrieved September 2025

Lobbying and Political Influence

In late 2025, Tether America was publicly listed as a private donor to President Trump’s $300 million White House State Ballroom project, which involved demolishing the historic East Wing and drew criticism from lawmakers and preservationists.

Tether became the political power house by 2024. In 2024, it increased market capitalization by nearly $50 billion, expanded investments across industries, and reduced lobbying spending to $360,000, down from $1,240,000 in 2023 and $480,000 in 2022.

Tether stores reserves at Cantor Fitzgerald, led by Howard Lutnick, who supported the coin and served as co-chair of President-elect Donald Trump’s transition committee. Its sister firm, Bitfinex Securities, became El Salvador’s first licensed Digital Asset Service Provider, while Tether invested in local ventures such as Volcano Energy. In Europe, regulatory changes under MiCA limited Euro-based operations, prompting partnerships like Quantoz Payments.

Alleged price manipulation

Academic Research

In 2020, Griffin and Shams observed that Bitcoin responded positively to Tether (USD₮) minting following negative price shocks, while larger mintings preceded negative returns; Lyons and Viswanth-Natraj (2020) found no consistent evidence of price impact.[10]

In June 2020, Tether and Bitfinex denied allegations in a New York class action lawsuit claiming market manipulation. General Counsel Stuart Hoegner emphasized the claims were baseless, unsupported, and misinterpreted correlation as causation. Research between 2018 and 2021 examined interactions between stablecoins and digital assets, focusing on Tether and Bitcoin. Studies found Tether issuances and large transfers often coincided with increased trading activity and rising Bitcoin prices during market stress

Media Research

Between 1 May and 22 June 2018, Bloomberg News reported irregularities on the Kraken cryptocurrency exchange, noting that small market orders affected Tether’s price as significantly as larger orders. New York University professor Rosa Abrantes-Metz and Federal Reserve examiner Mark Williams suggested that the unusual order sizes indicated potential wash trading by automated trading programs.

In June 2018, Bloomberg News alleged Tether price manipulation on Kraken. The claims were widely criticized, with Tether noting USDT’s stability, low Kraken volume, and asset-backed design, asserting no evidence of market or volume manipulation existed.

Legal Research

In 2018, the U.S. Justice Department reportedly investigated whether traders used Tether to inflate Bitcoin prices during its 1,300 percent rally. Bloomberg reported that prosecutors suspected coordinated price manipulation on Bitfinex, while academic research suggested Tether purchases were used to stabilize and manipulate Bitcoin’s market value.

According to Tether’s own website, USDT can supposedly be purchased with dollars or redeemed by exchanges and certain corporate clients but not by anyone in the U.S. Journalist Jon Evans noted that, by August 2018, he hadn’t seen a single publicly verifiable example of anyone actually buying a newly issued Tether or redeeming it.

Security and liquidity

Tether (USDT) was originally believed to be fully backed 1:1 by U.S. dollars and redeemable at any time. However, in 2017–2018, withdrawal difficulties and the termination of audits by Friedman LLP raised doubts about its transparency, briefly causing Tether’s price to fall below its $1 peg, reaching 93 cents.

In November 2017, approximately $30 million in Tether (USDT) was stolen from Tether’s treasury wallet. The theft was linked to the same wallet involved in Bitstamp’s 2015 hack. Tether implemented emergency measures to secure remaining funds, but the incident raised concerns over digital asset security.

Tether has faced criticism for allegedly misleading transparency claims, including a 2018 law firm report instead of an independent audit. The company has not provided an audit by a major accounting firm. In January 2018, Tether announced the termination of its relationship with its auditing firm.

In November 2017, approximately $30 million in Tether (USDT) was stolen from Tether’s treasury wallet. The theft was linked to the same wallet involved in Bitstamp’s 2015 hack. Tether implemented emergency measures to secure remaining funds, but the incident raised concerns over digital asset security.

In 2019, New York Attorney General Letitia James sued Tether Ltd. and Bitfinex for allegedly hiding $850 million in losses. The company’s inability to fulfill withdrawals, lack of audits from Friedman LLP, and unclear backing of USDT led to claims that Tether’s “100% backed by USD” assertion was misleading.

By 2021, Tether’s circulation had reached $69 billion, with $48 billion issued that year alone. Portions of its reserves were invested in cash equivalents and commercial paper, while loans covering Bitfinex losses raised questions about liquidity and regulatory risk.

In September 2022, a New York judge ordered Tether and Bitfinex to produce financial and transaction records related to USDT. The order was part of a 2019 class-action lawsuit alleging market manipulation and misrepresentation of USDT’s backing. Both firms denied the allegations.

In November 2023, Tether announced that it had frozen $225 million worth of its cryptocurrency linked to a human trafficking network in Southeast Asia. Erin West, deputy district attorney for Santa Clara County, California, stated that Tether’s action to freeze $225 million linked to human trafficking reflects the company’s stance on targeting funds derived from fraudulent or criminal activities.

In December 2023, Tether CEO Paolo Ardoino informed the U.S. House Financial Services and Senate Banking committees that the company was enhancing cooperation with law enforcement and implementing stricter sanctions controls, including disabling tokens in wallets on the OFAC sanctions list. Later, Ardoino stated in a letter to the U.S. Senate that the company helped the Department of Justice, FBI, and Secret Service freeze $435 million in 326 USDT wallets. Tether integrated these agencies into its platform to combat illicit activity and enhance transparency.

In March 2024, U.S. authorities seized $1.4 million in Tether (USDT) linked to a tech support scam targeting mainly elderly victims. The funds, stored in unhosted wallets, mark one of the first U.S. recoveries of cryptocurrency from fraud proceeds. In August 2024, U.S. authorities seized nearly $5 million in Tether (USDT) linked to a “pig butchering” cryptocurrency investment scam. The fraud involved victims lured via fake romantic relationships and trading platforms, with funds laundered through multiple cryptocurrency wallets.

Rumble, “Rumble Secures $100 Million Advertising Commitment from Tether”, Achieved, Retrieved October 2025

Al Jazeera, “Who are the private donors funding Trump’s White House ballroom?”, Achieved, Retrieved October 2025

Protos, “Tether became a political powerhouse in 2024”, Achieved, Retrieved December 2024

ScienceDirect, “The Intraday Bitcoin Response to Tether Minting and Burning Events: Asymmetry, Investor Sentiment, and ‘Whale Alerts’ on Twitter”, Achieved, Retrieved October 2022

Tether Operations, “Tether and Bitfinex denounce baseless lawsuit designed to undermine the cryptocurrency community”, Achieved, Retrieved June 2020

SSRN, “The Influence of Stablecoin Issuances on Cryptocurrency Markets”, Achieved, Retrieved July 2020

Bloomberg, “Crypto Coin Tether Defies Logic on Kraken’s Market, Raising Red Flags”, Achieved, Retrieved June 2018

Bloomberg, “Soros-Backed Fund’s Christmas Night Trading Frenzy Led to Arrest”, Archived, Retrieved September 2022

Kraken, “On Tether: Journalists Defy Logic, Raising Red Flags”, Achieved, Retrieved July 2018

CNBC, “As bitcoin nosedives, regulators said to be investigating whether it was propped up illegally”, Achieved, Retrieved November 2018

TechCrunch, “What the hell is the deal with Tether?”, Achieved, Retrieved August 2018

Finance Magnates, “Tether, Bitstamp Most Likely Hacked by the Same Person”, Achieved, Retrieved November 2017

Crypto News, “Consumer Watchdog Flags Tether for Lack of Transparency in US Dollar Reserves Audit”, Achieved, Retrieved September 2024

CoinDesk, “Tether Confirms Its Relationship With Auditor Has ‘Dissolved’”, Achieved, Retrieved September 2021

Easy Crypto, “What is Tether (USDT) and How Does It Work?”, Achieved, Retrieved June 2021

Bloomberg, “Anyone Seen Tether’s Billions?”, Achieved, Retrieved October 2021

The Block, “Tether, Bitfinex ordered to show financial documents over USDT stablecoin”, Achieved, Retrieved September 2021

Questions About Dollar Reserves

In September 2017, Tether published a memorandum from a public accounting firm, which Tether Limited claimed demonstrated that its tokens were fully backed by U.S. dollars. However, The New York Times reported that the document’s wording did not conclusively prove the coins were dollar-backed.

In September 2021, Tether released a third-party report claiming that its cryptocurrency, USDT, was fully backed by U.S. dollars, though the report included significant disclaimers. The report, prepared by a law firm rather than an accounting audit, did not conclusively resolve concerns about Tether’s reserves or market manipulation allegations.

In March 2021, the New York Attorney General reached a settlement with Bitfinex and Tether over allegations that Tether misrepresented the backing of its cryptocurrency. Simultaneously, NYAG and the SEC filed actions against Coinseed for raising funds through unregistered securities, defrauding investors, and violating U.S. securities laws.

Tether agreed to provide quarterly reports on its reserves for two years. By the end of 2023, its reserves included $63 billion in U.S. Treasuries, $3.5 billion in precious metals, $2.8 billion in bitcoin, $3.8 billion in other investments, and $4.8 billion in secured loans.

On September 30, 2023, Tether’s attestation by BDO confirmed that 85.7% of its reserves were held in cash and cash equivalents, including $72.6 billion in U.S. Treasury bills, with a $330 million reduction in secured loans, keeping assets above liabilities.

In January 2024, Cantor Fitzgerald’s CEO confirmed that Tether holds the billions of dollars in reserves it claims to back its USDT stablecoin. Serving as Tether’s custodian since 2021, the firm verified the reserves, supporting Tether’s previous attestations and countering longstanding speculation about under-collateralization.

As of January 31, 2025, Tether (USDT) held $98 billion in the U.S. Treasury securities, capturing 70% of the stablecoin market. With over 330 million wallets interacting with USDT, it plays a significant role in global dollar liquidity and supports demand for U.S. Treasuries amid de-dollarization trends.

Reuters, “Crypto firm Tether says it has frozen $225 mln linked to human trafficking”, Achieved, Retrieved November 2023

Newsweek, “U.S. Prosecutors Call Huge Cryptocurrency Fraud Seizure a ‘Game Changer’”, Achieved, Retrieved December 2023

Politico, “Elizabeth Warren’s new crypto target”, Achieved, Retrieved December 2023

Binance, “Tether CEO Reveals Company Has Frozen $435 Million in USDT and Assisted US Law Enforcement”, Achieved, Retrieved December 2023

United States Attorney’s Office, “United States Seizes $1.4 Million in Cryptocurrency Linked to Alleged Tech Support Scam”, Achieved, Retrieved March 2024

United States Attorney’s Office, “Investment Fraud Disrupted by Seizure of $5 Million in Cryptocurrency”, Achieved, Retrieved August 2024

Friedman LLP, “MoM Regarding Services Performed”, Achieved, Retrieved September 2017

CoinDesk, “Tether Review Claims Crypto Asset Fully Backed – But There's a Catch”, Achieved, Retrieved September 2021

UK Practical Law, “New York Attorney General Settles with Bitfinex and Tether for Crypto Violations, Brings Unregistered Token Action Against Coinseed”, Achieved, Retrieved March 2021

Economic Times, “Stablecoin Tether crosses $100 billion tokens in circulation”, Achieved, Retrieved March 2024

Tether Operations, “Tether Q3 Attestation Reveals Highest Percentage of Cash & Cash Equivalent Reserves”, Achieved, Retrieved October 2023

The Block, “Cantor Fitzgerald CEO says Tether has the billions of dollars in reserves it claims”, Achieved, Retrieved January 2024

Legal Cases

On April 25, 2019, New York Attorney General Letitia James obtained a court order against iFinex Inc., operator of Bitfinex, and Tether Limited, citing potential fraud involving co-mingled client and corporate funds totaling $850 million. The order barred further dissipation of Tether’s U.S. dollar reserves and required disclosure of relevant documents.

The investigation revealed Bitfinex had accessed up to $900 million from Tether’s reserves to cover undisclosed losses, undermining claims that USDT was fully backed 1-to-1 by cash. The Attorney General’s office alleged conflicts of interest, undisclosed transactions, and misleading practices that put New York investors at risk.

On April 26, 2019, New York Attorney General Letitia James obtained a court order against iFinex, operator of Bitfinex, and Tether, alleging $850 million in losses were secretly covered using Tether’s reserves. The order barred further access to funds and required disclosure of related documents to protect investors.

In May 2018, Bitfinex inquired about efficiently transferring funds from Crypto Capital following reports that Poland had frozen a Crypto Capital account holding at least $340 million. Crypto Capital cited temporary freezes, tax issues, banking errors, staff absences, and alleged government corruption as reasons for delays in returning Bitfinex’s funds. During the legal proceedings, iFinex denied allegations that Tether Limited was used to conceal losses, explaining that Bitfinex had borrowed US$400 million from Tether due to restricted access to funds frozen at Crypto Capital Corp (Case Point No. 38). The company stated that the loans, including interest, were fully repaid by February 5, 2021.

In May 2019, New York authorities banned Bitfinex and Tether from operating in the state, citing alleged violations of state law. The action highlighted regulatory scrutiny of cryptocurrency exchanges and stablecoin issuers in the United States[11].

In 2021, on May 6, New York Supreme Court Judge Joel M. Cohen modified the injunction against iFinex, ruling that the New York Attorney General’s accusations were too broad and lacked specificity, emphasizing that injunctions must be precise and clearly defined.

U.S. Commodity Futures Trading Commission (CFTC)

In 2017, U.S. regulators, including the CFTC, subpoenaed cryptocurrency exchange Bitfinex and stablecoin issuer Tether amid concerns over Tether’s $2.3 billion reserves, which had not been independently verified or audited.[12]

Before 25 February 2019, Tether Limited stated that each USDT was fully backed 1:1 by traditional currency in its reserves. After that date, the company revised its terms, claiming tokens were backed by broader reserves, including cash, cash equivalents, and loans to third parties, including affiliated entities.

In 2021, Tether’s general counsel told the New York Supreme Court that only about 74% of USDT in circulation was backed by cash and equivalents, totaling roughly $2.1 billion, amid ongoing NYAG scrutiny of Bitfinex’s $600 million loan from Tether. The disclosure highlighted that USDT was no longer fully backed by liquid assets.[13]

On 15 October 2021, Tether Limited paid a US$41.6 million fine for falsely claiming that its issued USDT tokens were fully backed by fiat U.S. dollars. According to Tether’s affidavit, the stablecoins were actually backed by a combination of fiat currency, unsecured receivables, commercial paper, funds held by third parties, and other non-fiat assets.

In May 2021, Tether published a report indicating that 2.9% of its USDT tokens were backed by fiat U.S. dollars, 49.6% by commercial paper, and the remainder by other assets. Before 25 February 2019, Tether Limited stated that each USDT was fully backed 1-to-1 by traditional currency held in its reserves, claiming parity with the U.S. dollar; however, the company has not permitted an independent audit to verify these claims. In 2022, Tether announced it had eliminated commercial paper from its reserves, replacing them with U.S. Treasury Bills (T-Bills) to enhance transparency and investor protection, marking a major step toward fully secure backing for its stablecoin tokens.

ARK Invest, “Stablecoins Could Become One Of The US Government’s Most Resilient Financial Allies”, Achieved, Retrieved June 2025

New York State Attorney General, “Attorney General James Announces Court Order Against ‘Crypto’ Currency Company Under Investigation For Fraud”, Achieved, Retrieved April 2019

CoinDesk, “Bitfinex Covered $850 Million Loss Using Tether Funds, NY Prosecutors Allege”, Achieved, Retrieved September 2021

Attorney General of the State of New York Investor Protection Bureau, “Settlement Agreement”, Achieved

Forkast, “Bitfinex, Tether banned in New York. No end yet to Ripple XRP’s SEC lawsuit woes. CBDC bridge for Asia and Middle East.”, Achieved, Retrieved February 2021

Studocu, “James v. iFinex Inc: Supreme Court Ruling on Investor Fraud Issues”, Achieved, Retrieved 2024

Bloomberg, “U.S. Regulators Subpoena Crypto Exchange Bitfinex, Tether”, Achieved, Retrieved January 2018

Commodity Futures Trading Commission, “Order instituting proceedings pursuant to section 6(c) and (d) of the Commodity Exchange Act, making findings, and imposing remedial sanctions”, Achieved, Retrieved October 2021

CoinDesk, “Tether Lawyer Admits Stablecoin Now 74% Backed by Cash and Equivalents”, Achieved, Retrieved April 2019

Law News, “How To Handle Disputes Over Funeral Arrangements”, Achieved, Retrieved December 2025

Fast Company, “What’s happening with Tether? Investors flee amid fears of the next stablecoin crisis”, Achieved, Retrieved May 2022

Economics, Sociology, Zombies, “Crypto scam social science thoughts: The role of the elite news media and academia”, Achieved, Retrieved September 2023

Tether Operations, “Tether Slashes Commercial Paper to Zero”, Achieved, Retrieved October 2022