According to documents provided by prosecutors, Tether owned shares of Industrial & Commercial Bank of China, China Construction Bank and Agriculture Bank of China, among many others.
A Bloomberg investigation about two years ago provided evidence that Tether’s reserves actually included billions of dollars in short-term loans to Chinese companies maturing before the end of 2021.
The outcry was that Tether violated a ban on U.S. individuals and entities investing in securities of Chinese companies that “undermine the security or democratic values of the United States and its allies.”
In addition, law enforcement suspects that Tether executives concealed the true extent of the reliance
USDT’s insurance reserve balance from the commercial paper of troubled Chinese development giant Evergrande.
Reacting to Bloomberg’s publication, Tether announced that “the news outlet is trying in vain to present simple facts in the form of sensational crime exposé.”. The New York attorney general’s office, the USDT issuer assures, is in vain to prosecute the company for past purchases of Chinese financial securities.
Tether chief technology officer Paolo Ardoino said the company is ready to openly release all documents turned over to NYAG. He assures that Tether has long survived “childhood diseases” and the company is ready to adequately respond to any external attacks and pressures.
Paolo Ardoino believes that public and unsubstantiated claims against Tether allow attackers to capitalize on the general nervousness of the cryptocurrency market.