Summary
The company has faced scrutiny for its opaque reserve management, including risky assets like Chinese commercial paper and now-bankrupt crypto lender Celsius. It claims to now be backed by more secure investments such as U.S. Treasury bills, repurchase agreements, and money market funds.
Key Points
1. Tether has faced scrutiny for its opaque reserve management practices, including risky investments in assets like Chinese commercial paper and credit to now-bankrupt crypto lender Celsius.
2. The company has been criticized for a lack of independent audits, with some questioning the reliability of its reserve backing.
3. Tether claims to have shifted towards more secure investments, such as U.S. Treasury bills, repurchase agreements, and deposits in money market funds, in order to bolster its reserve backing.