Is Tether a Fraud? Its Bank Says It's Not Unconfirmed

Gregory Pepin, deputy CEO of Deltec Bank and Trust, responds to allegations in a blog post by the pseudonymous Crypto Anonymous, that Tether is a "highly probably fraud." In this episode, he covers:
how Deltec accounts for its reserves, and why they didn't show up on Crypto Anonymous's blog post
where the dollars backing Tethers are held
how Tethers get created
where Tether Ltd. keeps its cash equivalents
why there's more demand for trading with USDT than with USD partially because of the arbitrage opportunity between East and West 
how Tethers get created using Deltec
why USDT gets minted in very round numbers as opposed to very specific numbers that USDC is minted in
where the cash equivalents backing Tethers are held
what type of due diligence Deltec conducted when it took on Tether Ltd. as a customer
why the perception that Tether is unregulated compared to other stablecoins is false
what Deltec thinks about the New York Attorney General office's investigation in to Tether
why Deltec has a "large position in bitcoin"
 
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Crypto.com: http://crypto.com
 
Episode links:
Gregory Pepin: https://twitter.com/dzrgreg
Deltec Bank: https://www.deltecbank.com/?locale=en
 
Crypto Anonymous’s Medium post: https://crypto-anonymous-2021.medium.com/the-bit-short-inside-cryptos-doomsday-machine-f8dcf78a64d3
 
Deltec having large position in bitcoin: https://www.theblockcrypto.com/linked/91353/deltec-bitcoin-position-tether
 
Original video in which Deltec mentions its “large position in bitcoin”: https://www.deltecbank.com/2021/01/14/a-covid-year-in-review/
 
Deltec banking Tether: https://www.coindesk.com/deltec-chairman-says-tether-letter-on-bank-relationship-is-authentic
 
Tether not audited: https://www.coindesk.com/tether-review-claims-crypto-asset-fully-backed-theres-catch
 
Tether says it is fully backed: https://www.coindesk.com/tether-says-its-stablecoin-is-fully-backed-again
 
Tether current balances: https://wallet.tether.to/transparency?__cf_chl_jschl_tk__=c035d054dd287020b16d6dbb4b70398ca7a99dcb-1611253376-0-AcOsT0Zqpd8Muzw5gnkSz6KKmTrN3WAssxGX8K-p_PkeZ2SUfW9EsAr-a2EkIojYzm5-3RA_1DHxpoK579d0YgtnxMYevlVRSS7RIAKh0sgk-ORzOZUDNgg_AvZjugdrxWVjTA9dCBf1hX4X83oU3-RTjQYn_qYukdRFJUq9a89BXyyDovL3bu4ohxSSVdworOR-cdxEiPURe4ZJrGIvuW3Ej2qJLJt3RDXfX6BfDANdpkVrU6O2KB4V0Or-HJjItS0uAu-L7KrTomXNv9anUv34_An8cH3VHYfB_OD-iyIvkgOh7RHd-Xafe-SJwPnUYg
 
What Tether is backed by: https://wallet.tether.to/transparency?__cf_chl_jschl_tk__=c035d054dd287020b16d6dbb4b70398ca7a99dcb-1611253376-0-AcOsT0Zqpd8Muzw5gnkSz6KKmTrN3WAssxGX8K-p_PkeZ2SUfW9EsAr-a2EkIojYzm5-3RA_1DHxpoK579d0YgtnxMYevlVRSS7RIAKh0sgk-ORzOZUDNgg_AvZjugdrxWVjTA9dCBf1hX4X83oU3-RTjQYn_qYukdRFJUq9a89BXyyDovL3bu4ohxSSVdworOR-cdxEiPURe4ZJrGIvuW3Ej2qJLJt3RDXfX6BfDANdpkVrU6O2KB4V0Or-HJjItS0uAu-L7KrTomXNv9anUv34_An8cH3VHYfB_OD-iyIvkgOh7RHd-Xafe-SJwPnUYg
 
New York Attorney General’s office press release on investigation into iFinex: https://ag.ny.gov/press-release/2019/attorney-general-james-announces-court-order-against-crypto-currency-company
 
CoinDesk on NYAG investigation: https://www.coindesk.com/bitfinex-ny-prosecutors-tether-850-million-allege
 
Link to the Crypto News Recap:
https://unchainedpodcast.com/what-8-trillion-could-do-in-bitcoin/