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News

Tether Generated $11.6 Billion In Mortgage Loans Over The Last Two Years

June 17, 2023 - Around 2 mins mins to read

Key Points:

  • Tether issued $11.6 billion in mortgage loans between June 2019 and May 2021.
  • The documents also show that Tether repaid an $8 billion loan during the period.
  • The stablecoin issuer says it will reduce collateralized and over-collateralized loans in its reserves to zero in 2023.
According to The Block, the New York Attorney General released legal settlement documents this week, and stablecoin issuer Tether issued $11.6 billion worth of mortgage loans from June 2019 to May 2021.
Tether Generated $11.6 Billion In Mortgage Loans Over The Last Two Years

According to the document, of the 694 loans, 89% have Bitcoin as collateral and 9% have Ethereum as collateral. The remaining 2% is collateralized with Tether Gold (XAUT) and other securities. The USDT issuer received a total of 450,000 Bitcoin and 1.1 million Ethereum as collateral. The documents also show that Tether repaid an $8 billion loan during the period.

In December 2022, the stablecoin issuer announced that it would reduce its collateralized and over-collateralized loans in its reserves to zero in 2023. Previously, crypto firms Bitfinex and Tether settled with the New York Attorney General’s Office (NYAG), ending a legal dispute that began in mid-2019.

Earlier this year, USDT fulfilled its reporting obligations to the New York Attorney General’s Office under the terms of the 2021 settlement. That agreement requires reporting on Tether’s reserves every quarter for two years.

Tether Generated $11.6 Billion In Mortgage Loans Over The Last Two Years

That settlement is related to the April 2019 event that the NYAG’s office alleged that Bitfinex used Tether funds to covertly cover $850 million lost to payment processor Crypto Capital. The lost funds are believed to have caused withdrawal problems for Bitfinex customers in late 2018.

The documents were obtained by the NYAG during its investigation into Tether, which resulted in a settlement in February 2021 and a $18.5 million fine. They were released after a freedom of information request was made by crypto publication CoinDesk, and the Attorney General’s office provided them to The Block.

The stablecoin issuer has urged CoinDesk not to disclose information about its past and current customers. This initiated procedures to prevent the public dissemination of confidential customer data and prevent the use of commercially sensitive information that could be exploited by malicious actors.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

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Coincu News

News

Tether Generated $11.6 Billion In Mortgage Loans Over The Last Two Years

Key Points:

  • Tether issued $11.6 billion in mortgage loans between June 2019 and May 2021.
  • The documents also show that Tether repaid an $8 billion loan during the period.
  • The stablecoin issuer says it will reduce collateralized and over-collateralized loans in its reserves to zero in 2023.
According to The Block, the New York Attorney General released legal settlement documents this week, and stablecoin issuer Tether issued $11.6 billion worth of mortgage loans from June 2019 to May 2021.
Tether Generated $11.6 Billion In Mortgage Loans Over The Last Two Years

According to the document, of the 694 loans, 89% have Bitcoin as collateral and 9% have Ethereum as collateral. The remaining 2% is collateralized with Tether Gold (XAUT) and other securities. The USDT issuer received a total of 450,000 Bitcoin and 1.1 million Ethereum as collateral. The documents also show that Tether repaid an $8 billion loan during the period.

In December 2022, the stablecoin issuer announced that it would reduce its collateralized and over-collateralized loans in its reserves to zero in 2023. Previously, crypto firms Bitfinex and Tether settled with the New York Attorney General’s Office (NYAG), ending a legal dispute that began in mid-2019.

Earlier this year, USDT fulfilled its reporting obligations to the New York Attorney General’s Office under the terms of the 2021 settlement. That agreement requires reporting on Tether’s reserves every quarter for two years.

Tether Generated $11.6 Billion In Mortgage Loans Over The Last Two Years

That settlement is related to the April 2019 event that the NYAG’s office alleged that Bitfinex used Tether funds to covertly cover $850 million lost to payment processor Crypto Capital. The lost funds are believed to have caused withdrawal problems for Bitfinex customers in late 2018.

The documents were obtained by the NYAG during its investigation into Tether, which resulted in a settlement in February 2021 and a $18.5 million fine. They were released after a freedom of information request was made by crypto publication CoinDesk, and the Attorney General’s office provided them to The Block.

The stablecoin issuer has urged CoinDesk not to disclose information about its past and current customers. This initiated procedures to prevent the public dissemination of confidential customer data and prevent the use of commercially sensitive information that could be exploited by malicious actors.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Foxy

Coincu News