Documents filed with the New York Attorney General’s Office as part of the 2021 Tether settlement reveal that the company held Chinese securities backing the USDT stablecoin at the time, Bloomberg News reveals. . report.

The NYAG released the documents on June 15 under a Freedom of Information Act (FOIL) request by Coindesk after Tether withdrew its objection to the request.

The documents include letters, bank accounts, reserves, wallet addresses, and methods employed by Tether to detect money laundering.

It also details the status of the property as of March 31, 2021.

As part of the 2021 settlement between Tether and NYAG, the company was required to report its reserves quarterly for two years, which expired on June 15.

As of June 15, Tether has officially completed its two-year commitment.

tether Said The company initially blocked FOIL requests due to concerns about customers’ personal data, but withdrew its appeals to increase transparency with the cryptocurrency community.

However, it cautioned the media to avoid disclosing confidential information such as customer details. The company also posted a detailed blog post on many of the points raised in the media and why it made certain decisions in the past.

exposure of china

According to the documents, Tether held securities issued by major Chinese state-owned enterprises such as the Industrial and Commercial Bank of China, China Construction Bank and Agricultural Bank of China.

Tether also held securities issued by major European financial institutions such as Deutsche Bank and Barclays.

Most of the Chinese securities matured in 2020 and 2021, according to the documents.

In a blog post, Tether said the Chinese commercial paper it holds is mostly issued by banks, and the documents back it up. The firm also said holding such securities is common practice among some of the world’s largest investment managers.

Tether said it has steadily reduced its overall exposure to commercial paper to zero since then and said it does not hold any Chinese securities in its USDT reserves.

An article in which NYAG released documents detailing Tether’s exposure to Chinese securities in 2021 first appeared on CryptoSlate.

By Jules

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