Tether Condemns 'False Rumors' About its Exposure
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"These rumors are completely false and likely spread to induce further panic to generate additional profits from an already stressed market," the company said, adding that it "condemns such attempts" at manipulating market prices.
Commercial Paper Holdings
Tether also cited its most recent assurance opinion as proof of what its reserves are made up of. According to the document, US Treasuries made up roughly 47 percent of USDT's reserves as of March 31, while commercial papers made up around 25%. The firm also stated that its commercial paper holdings have been further reduced since the most recent assurance opinion and that they will "gradually decrease to zero." The statement said that "all commercial papers are expiring and will be rolled into US Treasuries with a short maturity." Additionally, the firm addressed claims that it has exposure to Celsius, a crypto lending and borrowing firm that has ceased withdrawals after facing pressure, and Three Arrows Capital, a prominent crypto hedge fund that is considered insolvent.