FTX-Tether Connection: Involvement Of Banks Raises Questions

Beleaguered crypto exchange FTX's connection with Tether remains in question as the banks used by both companies are run by the same person. FTX's Alameda Research invested $11.5 million in Farmington State Bank's parent FBH, run by Jean Chalopin.

Timeline of Tether

After unveiling a football cup that will run concurrent with the ongoing FIFA World Cup, the crypto exchange platform OKX has gone a step further to assist the OKX Football Cup players to mint free OKX Football Cup NFTs.  While players are required to stake 0.

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Tether, the largest stablecoin issuer in the world, has released a statement assuring investors that USDT is in no way affected by the meltdown of crypto exchange FTX and its trading arm Alameda Research.

Tether released a statement to address the FUD surrounding USDT Weighted sentiment saw an uptick, transaction count fell Owing to the uncertainty being fueled by FTX's collapse, many members of the crypto-community have suspected that USDT could also be exposed to its negative impact.

Tether, the issuer of the major stablecoin USDT, denied having exposure to either Genesis Global Capital or Gemini Earn. Some, however, wonder how it is possible for such a large company not to be affected by any of the massive events that shook the crypto space this year.

Stablecoin issuer Tether (CRYPTO: USDT) said on Wednesday that it had no exposure to institutional cryptocurrency lender Genesis or the Gemini Earn program, which have halted withdrawals. What Happened: The lending division of crypto investment bank Genesis Global Trading temporarily stopped withdrawals on Wednesday, raising speculations that USDT had significant exposure to Gemini.

Genesis has stopped both debt repayments and new loan issuances, according to a statement from CEO Derar Islim today. The withdrawal requests surpassed the available liquidity at Genesis Global Capital.

The accounting firm BDO Italia has performed a quarterly assurance on the Consolidated Reserves of Tether Holdings Limited and its wholly-owned subsidiaries as of 30th September 2022. According to its report, Tether Group's consolidated assets exceed its consolidated liabilities.

In response to the sudden movement of funds out of FTX and FTX US wallets, Tether took a protective measure by blacklisting USDT related to the FTX wallet drainer. Almost $600 million in tokens were transferred out of wallets with stablecoins withdrawals swapped from Tether to DAI and other tokens swapped to Ethereum.

Billionaire entrepreneur Elon Musk, who recently purchased Twitter in hopes of unleashing the platform's full potential, acknowledged Twitter's contribution in tracking down the FTX developments in real time.