On Thursday, Nov. 1, Tether released a letter attributed to Bahamas-based Deltec Bank, stating that, as of the end of Oct. 31, 2018, ‘Tether Limited’ owns an account with a ‘portfolio cash value’ of $1,831,322,828. According to a Bloomberg publication, so far, the bank has declined to comment on the claim.
After months of FUD, weeks of declining USDT circulation and market cap, a purge of assets, and various rumors — this bank attestation appears to be raising further concerns rather than taking care of existing ones.
Deltec’s ‘due diligence review’ of Tether Limited’s assets
According to the statement on USDT’s website, to become the bank’s customer and acquire the presented bank attestation, Tether had to and will continue to undergo a long due diligence review of their portfolio holdings.
As mentioned in the publication, the review included a complete background check of Tether’s shareholders, ultimate beneficiaries and executives, a full analysis of their processes, policies, and procedures for compliance, as well as an affirmation of the 1:1 USD-peg claim.“The acceptance of Tether Limited as a client of Deltec came after their due diligence review of our company. This included, […]. This process of due diligence, was conducted over a period of several months and garnered positive results, which led to the opening of our bank account with this institution. Deltec reviews our company on an ongoing basis.”
Signature, but no name?
Neither the name or position of the company executive whose signature is on that bank attestation, are known. Some critics have even gone out to compare the statement to a similar one from Marmota Bank, and their style of writing appears to be quite similar.
No diffrence. pic.twitter.com/zGskEghKCl
— DiMarty (@zvirgzdys) November 2, 2018
According to Bloomberg, Deltec spokeswoman Melanie Hutcheson has refused to confirm or dismiss Tether’s claims when contacted via phone a day after the publication.
USDT’s market cap descent
As of the time of this writing, USDT market cap has plunged from over $2.8 billion to below $1.8 billion since mid-October. This bear market was set off by a sudden decline in Tether’s price to below $0.90 on some exchanges. The drop, totally unexpected for most, promoted panic among the unsuspecting holders and traders, leading to a sell-off.
On Oct. 24, Tether announced the purge of half a billion USDT, leaving their treasury fund with about 466 million. Actions such as this one have left some critics to speculate whether the reduction in supply was intended to ensure the success of Deltec Bank’s due diligence review.