Coinbase director’s analysis sparks scrutiny over Alameda Research’s Tether transactions By Investing.com
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Alameda Research, a leading quantitative cryptocurrency trading firm, is facing scrutiny over its involvement in the creation and redemption of ‘s USDT stablecoin. The controversy emerged following an analysis by Coinbase (NASDAQ:) Director, Conor Grogan.
Grogan discovered through blockchain data analysis that Alameda redeemed over $38 billion in Tether (USDT) tokens in 2021, without having equivalent assets under management. Furthermore, Alameda was found responsible for minting $39.55 billion of USDT, which constituted 47% of Tether’s circulating supply. This amount surpassed Alameda’s total assets during the height of the 2021 cryptocurrency bull run.
The transactions between Alameda and crypto exchange FTX have also raised eyebrows. FTX reportedly ordered redemptions of $3.9 billion USDT, primarily during the Terra Luna algorithmic stablecoin crash. These redemptions were likely sourced from Alameda’s tokens.
The former co-CEO of Alameda, Sam Trabucco, disclosed that the firm leveraged arbitrage opportunities due to USDT’s fluctuating value. However, these activities have been controversial as they reportedly used customer deposits for trading activities.
Adding to the complexity of the situation is Tether’s lack of independent auditing, raising transparency issues. Tracking Tether’s funds has proven to be complex due to off-chain burns and direct transfers to its treasury.
In other news related to Tether, it was reported that the company has resumed lending USDT stablecoins to shield customers from liquidity shortages. It has also made an undisclosed investment in Northern Data Group, indicating ambitions to diversify beyond stablecoins.
Additionally, at the peak of the cryptocurrency market, Alameda minted more USDT than its total assets. This coincides with FTX founder Sam Bankman-Fried’s ongoing fraud trial. The total supply of Tether’s USDT on exchanges hit a multi-month high, suggesting increased trader buying power. Lastly, it was reported that Tether has entered the Artificial Intelligence space, further expanding its portfolio.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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Alameda Research, a leading quantitative cryptocurrency trading firm, is facing scrutiny over its involvement in the creation and redemption of ‘s USDT stablecoin. The controversy emerged following an analysis by Coinbase (NASDAQ:) Director, Conor Grogan.
Grogan discovered through blockchain data analysis that Alameda redeemed over $38 billion in Tether (USDT) tokens in 2021, without having equivalent assets under management. Furthermore, Alameda was found responsible for minting $39.55 billion of USDT, which constituted 47% of Tether’s circulating supply. This amount surpassed Alameda’s total assets during the height of the 2021 cryptocurrency bull run.
The transactions between Alameda and crypto exchange FTX have also raised eyebrows. FTX reportedly ordered redemptions of $3.9 billion USDT, primarily during the Terra Luna algorithmic stablecoin crash. These redemptions were likely sourced from Alameda’s tokens.
The former co-CEO of Alameda, Sam Trabucco, disclosed that the firm leveraged arbitrage opportunities due to USDT’s fluctuating value. However, these activities have been controversial as they reportedly used customer deposits for trading activities.
Adding to the complexity of the situation is Tether’s lack of independent auditing, raising transparency issues. Tracking Tether’s funds has proven to be complex due to off-chain burns and direct transfers to its treasury.
In other news related to Tether, it was reported that the company has resumed lending USDT stablecoins to shield customers from liquidity shortages. It has also made an undisclosed investment in Northern Data Group, indicating ambitions to diversify beyond stablecoins.
Additionally, at the peak of the cryptocurrency market, Alameda minted more USDT than its total assets. This coincides with FTX founder Sam Bankman-Fried’s ongoing fraud trial. The total supply of Tether’s USDT on exchanges hit a multi-month high, suggesting increased trader buying power. Lastly, it was reported that Tether has entered the Artificial Intelligence space, further expanding its portfolio.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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