The allegations also include links to criminal activities, such as being used in illegal transactions worth up to $19.3 billion in 2023, according to data from TRM Labs.
Consumers’ Research has openly placed ads in Times Square criticizing Tether with slogans like “Tether is corrupt.”
Consumers’ Research CEO Wild Hild has highlighted concerns about Tether’s business practices, including its lack of auditing and use by criminal organizations.
“We are shining a light on Tether for their questionable business practices, including a decades-long refusal to conduct audits and frequent visits by terrorists, drug traffickers, and human traffickers. use”.
If convicted, Tether’s USDT could lose value against the US dollar (depeg) as stablecoins often lose value when faced with controversy.
A popular example is the depeg algorithmic stablecoin LUNA/UST, which has pushed the crypto market into an extended winter.
Circle’s USDC also crashed in March 2023 due to its exposure to bankrupt Silicon Valley Bank (SVB). Some crypto community members expressed concern after discovering Circle had significant USDC reserves worth $3.3 billion locked at SVB.
Despite the allegations, Tether has introduced a new stablecoin called aUSDT, backed by gold, showing expansion plans amid this controversy.
In short, Tether is facing serious concerns and accusations from Consumers’ Research, which could threaten the company’s stability and reputation in the cryptocurrency market. The outcome will depend on how these allegations are handled and whether they affect investor confidence in Tether’s operations and value alignment with the US dollar.
