Controversial stablecoin Tether is only 74 percent backed by cash (and other assets)

Tether’s lawyer has now admitted that the stablecoin is only 74 percent backed by cash and equivalents, according to an affidavit filed on Tuesday. In the filing, Stuart Hoegner, the company’s general counsel, said Tether held approximately $2.1 billion in cash and short-term securities. “As of the date [April 30] I am signing this affidavit, Tether has cash and cash equivalents (short term securities) on hand totalling approximately $2.1 billion, representing approximately 74 percent of the current outstanding tethers,” said Hoegner. The lawyer also acts as the general counsel for cryptocurrency exchange Bitfinex, which alongside Tether, is facing allegations by…

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