Ok, so we know we talk a lot about Tether and Bitfinex. We don’t much like them. For the record, we don’t think they’re quite as shady as some have made out, but there’s plenty wrong with them.
And that’s why we felt the need to laugh at the letter that Tether’s new bank has provided to ‘prove’ the company has the US dollar reserves to back their USDT tokens. You can find a copy of the document here: https://tether.to/wp-content/uploads/2018/11/Tether-Letter.pdf
A cursory look at this letter will raise a number of questions for anyone who has ever received a letter from their own bank. Now, we don’t know how it works in the world of High Finance, but there are a couple of red flags here.
- Banks use your actual name. A generic ‘Sirs’, as we see here, is unusual, to say the least. They would perhaps use the company name, or more likely the name of the CEO or CFO. ‘Sirs’ reads like a crypto scammer has written it (they’re always polite to begin with). Tether presumably want to protect the identities of their people, but their CEO’s name isn’t exactly a secret. (And just to confirm, the CEO’s name isn’t ‘Sirs’.)
- That signature. It’s kind of, well, squiggly, isn’t it? Like, illegible. Of course, a lot of people’s signatures are. That’s why you also write your name underneath, so the recipient knows who the letter is from. A list of the people you might expect to have signed the letter can be found in this doc.
So here we have a letter, written from one unknown person to another unknown person, stating that Deltec hold a lot of money on behalf of Tether.
We’re not suggesting it’s fake. Only that both Tether (and Deltec) could do a lot better in their efforts to improve transparency and confidence in their business. And that we understand anyone who casts doubt on its provenance. They just make it so easy.
Ok, we’ll stop laughing at Tether now. Honest.
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