Tether Now Has a Bahamanian Bank Account with $1.8B
Tether Limited, the crypto company behind USDT and is infamous for its vague approaches, just announced in a public statement another baffling decision. The company has formed a good partnership with a small financial organization which has been around for 72 years, Deltec Bank, which is based in Nassau in the Bahamas.
A Detailed Review
It was stated that the bank had opened the bank account following an audit that lasted for several months, which entailed seeing if Tether could sustain the $1 peg for USDT, which has decreased for the past few weeks even as the company was able to redeem an amount that exceeded the $1 billion mark, since the start of October.
The review also entailed a full analysis of conformity procedures and regulations; a complete background check of all shareholders, as well as beneficiaries within the agency; an evaluation of the company’s competence regarding being able to hold the peg in relation to the US dollar; and how their treasury is managed. Constant reviews will be taking place indefinitely going forward.
A Huge Amount Added to the Account
It was confirmed via a letter from the bank that was published by Tether, who stands accused by a few entities of engaging in fractional-reserve activities, that the amount being held now in the account is about $1.83 billion. This amount of money is sufficient to cover the funds backing the outstaning USDT amount of 1.78 billion.
It was written in the aforementioned letter that it was ascribed to Deltec Bank and it emphasized the fact that this confirmation agreement was done without any liability to Deltec Bank.
The company’s connection with this particular bank was first mentioned on the Block before it was publicly announced. It was reported previously that the company was looking to partner with Noble Bank, which is based in Puerto Rico; but the bank is said to be up for sale after Tether, along with other major cryptocurrency clients left.
In June, the company released a document from their legal team in the United States Freeh, Sporkin, and Sullivan LLP that examined all the bank accounts belonging to Tether. It was found that they had more than enough money to pay for any outstanding amounts related to USDT, as of the first day of June, which is when the review took place.