Jan 22, 2021
Gregory Pepin, deputy CEO of Deltec Bank and Trust, responds to allegations in a blog post by the pseudonymous Crypto Anonymous, that Tether is a "highly probably fraud." In this episode, he covers:
- how Deltec accounts for its reserves, and why they didn't show up on Crypto Anonymous's blog post
- where the dollars backing Tethers are held
- how Tethers get created
- where Tether Ltd. keeps its cash equivalents
- why there's more demand for trading with USDT than with USD partially because of the arbitrage opportunity between East and West
- how Tethers get created using Deltec
- why USDT gets minted in very round numbers as opposed to very specific numbers that USDC is minted in
- where the cash equivalents backing Tethers are held
- what type of due diligence Deltec conducted when it took on Tether Ltd. as a customer
- why the perception that Tether is unregulated compared to other stablecoins is false
- what Deltec thinks about the New York Attorney General office's investigation in to Tether
- why Deltec has a "large position in bitcoin"
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Episode links:
Gregory Pepin: https://twitter.com/dzrgreg
Deltec Bank: https://www.deltecbank.com/?locale=en
Crypto Anonymous’s Medium post: https://crypto-anonymous-2021.medium.com/the-bit-short-inside-cryptos-doomsday-machine-f8dcf78a64d3
Deltec having large position in bitcoin: https://www.theblockcrypto.com/linked/91353/deltec-bitcoin-position-tether
Original video in which Deltec mentions its “large position in bitcoin”: https://www.deltecbank.com/2021/01/14/a-covid-year-in-review/
Deltec banking Tether: https://www.coindesk.com/deltec-chairman-says-tether-letter-on-bank-relationship-is-authentic
Tether not audited: https://www.coindesk.com/tether-review-claims-crypto-asset-fully-backed-theres-catch
Tether says it is fully backed: https://www.coindesk.com/tether-says-its-stablecoin-is-fully-backed-again
New York Attorney General’s office press release on investigation into iFinex: https://ag.ny.gov/press-release/2019/attorney-general-james-announces-court-order-against-crypto-currency-company
CoinDesk on NYAG investigation: https://www.coindesk.com/bitfinex-ny-prosecutors-tether-850-million-allege
Link to the Crypto News Recap:
https://unchainedpodcast.com/what-8-trillion-could-do-in-bitcoin/