It’s been almost two months since cryptocurrency exchange FTX filed for Chapter 11 bankruptcy, but dark details of what happened during the crisis continue to emerge today. . According to the latest Forbes report, USDT stablecoin issuer Tether received a phone call from his FTX founder Sam Bankman-Fried in disgrace just before filing for bankruptcy.
As we know, SBF was trying to contact all contacts to stop the sinking of the FTX ship. After initial support, even Binance released him within 24 hours. Seeing his empire crumble before his eyes, SBF turned to his Tether for funding, said Paolo Ardoino, his CTO at Tether. The SBF did not explicitly mention the amount he needed, but the USDT issuer “absolutely refused.”
Ardoino said there was clearly something wrong with the request and saying no was an easy decision. In Forbes’ words, Tether CTO added:
“He suddenly asked for something he’d never asked before, and it wasn’t about $10 million. The way he spoke suggested he was in big trouble. His demands were in the billions.”
SBF had made desperate calls in early November to prevent FTX from collapsing, but they were ultimately unsuccessful.
Tether’s Bittersweet Moment
USDT stablecoin issuer Tether is embroiled in controversy over its $66 billion reserves. His USDT stablecoin on Tether still holds more than 50% of his share of global Bitcoin trading volume.
Despite multiple instances of scrutiny, Tether has managed to maintain power through various seasons of market volatility and crypto winter. We survived some of the major market crashes of 2022.
During the Terra LUNA collapse, USDT issuers faced a $16 billion redemption from panicked investors. Likewise, they faced his $3 billion redemption upon the collapse of his FTX. In both cases, Tether handled the situation solidly.
Crypto exchange FTX is one of Tether’s biggest partners. But unlike his SBF involvement in all the behind-the-scenes activities and collusion with politicians, Tether successfully defies regulatory scrutiny. However, one of the big questions on the minds of cryptocurrency investors is why the stablecoin issuer does not publish his reports on his USDT reserves.
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