Since the announcement that Tether received a subpoena from the United States Commodity Futures Trading Commission on the 6th of December, it has become apparent that over one-third of the total supply of Tether was created after the date of the U.S Regulators subpoena delivery.
Tether increased the number of USDT by 775 million, comprising a 52.5% increase in the total supply from December 6th, 2017. As such, approximately 34.5% of all USDT created were produced after Tether had received the subpoena from the CFTC.
Tether Printed One-Third of All USDT After Receiving Subpoena
Following the recent announcement that Tether received a subpoena from the United States Commodity Futures Trading Commission (CFTC) on the 6th of December, it has become apparent that over one-third of the total supply of Tether was created after the date of the subpoena’s delivery.
Supply of USDT Increases Significantly Following December 6th Subpoena
Earlier this week, it was reported that Bitfinex and Tether had been sent subpoenas by the United States Commodity Futures Trading Commission (CFTC) on December 6th, 2017. Although further details pertaining to the subpoenas have not surfaced, the dramatic explosion in the number of USDT in circulation witnessed last year despite Bitfinex and Tether’s loss of banking partners in March has long called into question the integrity and transparency of both companies.
From February 2017, the number of USDT in circulation has grown by nearly 9,000%, rising from approximately $25 million USD at the start of February last year to more than $2.25 billion at the end of January 2018 according to Coinmarketcap. Since receiving the subpoena, Tether increased the number of USDT by 775 million, comprising a 52.5% increase in the total supply from December 6th, 2017. As such, approximately 34.5% of all USDT created were produced after Tether had received the subpoena from the CFTC.
Many sources have argued that much of the Tether created since December 6th may have been produced without USD backing, and then traded on exchanges to drive the price to record highs before the subpoena’s existence could be revealed.
The statement issued by Bitfinex and Tether regarding the CFTC subpoena claims “We routinely receive legal process from law enforcement agents and regulators conducting investigations. It is our policy not to comment on any such requests.”