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Reading: Tether Accused of Using Borrowed Money to Back USDT 
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Your Crypto News Today > Market > Tether Accused of Using Borrowed Money to Back USDT 
Market

Tether Accused of Using Borrowed Money to Back USDT 

May 12, 2025 2 Min Read
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Tether Accused of Using Borrowed Money to Back USDT 

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  • Analyst Warns of Ponzi-Like Construction Behind Tether
    • Tether’s El Salvador Transfer Raises Eyebrows

  • Crypto analyst Deso accuses Tether of utilizing dangerous monetary loops and borrowed funds as a substitute of actual USD to again USDT.

  • Tether’s HQ transfer to El Salvador and claims of $150B USDT management by its co-founder spark additional considerations over transparency.

A viral publish on X by crypto analyst Deso has raised critical questions in regards to the stability of Tether (USDT)—the world’s largest stablecoin. Deso claims Tether will not be totally backed by actual US {dollars}, however as a substitute by borrowed cash and dangerous monetary loops, probably endangering all the crypto market.

Analyst Warns of Ponzi-Like Construction Behind Tether

Tether, designed to take care of a 1:1 peg with the US greenback, is extensively utilized in crypto buying and selling and DeFi. Nevertheless, Deso alleges that actual greenback backing could also be lacking. Based on his evaluation, corporations are leveraging borrowed funds to purchase USDT, changing it into crypto like Bitcoin, after which promoting it for {dollars}—repeating the cycle.

The important thing gamers he names: Abraxas, Cumberland, and Wintermute. These corporations allegedly depend on excessive crypto costs and fixed demand to maintain the loop.

If costs fall or demand dries up, the system might collapse, leaving borrowed cash unpaid—a setup Deso likens to a Ponzi scheme.

Tether’s El Salvador Transfer Raises Eyebrows

In a separate publish, Deso highlighted that Tether not too long ago shifted its headquarters to El Salvador, a nation with out an extradition treaty with the U.S.

He additionally flagged that Tether’s co-founder, Giancarlo Devasini, now controls at the very least $150 billion in USDT, as per blockchain monitoring instruments like Arkham Intelligence.

Deso has referred to as on journalists, investigators, and the broader crypto neighborhood to scrutinize Tether’s reserves and operational practices extra intently.

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