Fairly recently thanks to a Freedom of Information Law request made by CoinDesk and Bloomberg. Documents detailing Tether's financial backing as of 2021.

Tether and China

In these documents, it was as clear as day that Tether was in part backed by financial papers from China. And they again would be criticized for their business decisions. They were initially heavily criticized back in mid-2022 for having relied on being backed by financial papers too heavily after court documents showed just to what extent this was the case. This even caused a massic short campaign against them where billions of dollars were put up in shorting the stablecoin. But lucky for the crypto space this did not cause any major crash or anything. It merely costs a lot of money for the people shorting it.

In response to this Tether then began a massive campaign where they let everyone know they were facing out the commercial peppers. And a few months later, in October of 2022, they reported they had 0 financial papers backing the stablecoin. But now they are under fire again, and this time for what type of financial papers were used to back them? Chinese financial papers. This has again caused to waves. And people have started to ask questions. Questions that Tether most likely does not want to be asked. Seeing just how secretive they have been over the years. And what little information that has been gained, has been done so more or less by a happy coincidence. And not thanks to Tether at all.

And these questions keep mounting. And tweets like the one from DoveyWan just add fuel to the fire. And the main question seems to be. How deep do Tethers's ties with China go? And this was something Protos set out to try and answer. And they seem to have uncovered the top of the Tether iceberg.

And they made a very nice and informative video explaining these initial connections. As well as making a post detailing everything. The link to their post can be found below. Part one and two of the video is above in the tweet. I can highly recommend both watching the videos and reading their post. It is truly great stuff. I can not recommend it enough.

What are your thoughts on Tethers Chinees connections? Is it something that has gotten you worried? It certainly is not making me sleep any better at least, that's for sure. But please let me know what you think about it. I might be seeing things not there, making a hen out of a feather. The comment section is all yours.

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Picture provided by: Fair use