Tether has updated the terms on its website, saying its dollar-linked USDT may not be 100% backed by financial reserves.
The new text states that although its 100% stable currency is supported, its reserves may sometimes include other assets.
Conditions on the site have been amended to:
“Every tether is always backed by 100% of our reserves, which include conventional currencies and their equivalent, and may include, from time to time, other assets and loan funds provided by the company to third parties,
The conditions were already in place in mid-February last year:
“” Every 1 tether coin is always supported in one dollar currency, which is the traditional currency found in our reserves. So 1 tether is always equivalent to $ 1 “
Tether was the focus of questions about whether the company had sufficient reserves to support US $ 1.9 billion to support the digital currency traded, although one report pointed out that, at least within specified time frames.
Last December, Bloomberg News reported that it had seen data from Tether Bank indicating that, for at least four separate months, the company had retained enough dollars to support USDT currencies in the market.
Much of the controversy over the company has arisen from the fact that Tether never offered a complete independent review of dollar guarantees. However, in November he issued a letter from Deltec, based in the Bahamas, as evidence of the reserves.
It was reported that Tether and its sister company, Bitfinex Trading Platform, had been called by the US Commodity Futures Trading Commission in December 2017 although the reason was not mentioned at the time. The researchers also accused the two companies of manipulating the price of the fabrication using USDT.