Hindenburg offers $1M bounty for details on Tether's backing

Hindenburg Research offers a reward of $1M for information "leading to previously undisclosed details" about cryptocurrency Tether's (USDT-USD) backing. Tether (USDT-USD) markets itself as a stablecoin, meaning each $1 of Tether is backed by an actual dollar or other reliable asset. "Hindenburg has doubts about the legitimacy of Tether's backing due to the company's sparse disclosure," the company said in a statement. "The company claims to hold a significant portion of its reserves in commercial paper yet has disclosed virtually nothing about its counterparties." In June, the Financial Times reported that Tether disclosed in May that it held just under $30B in commercial paper to back the stablecoins. That would make it one of the biggest CP holders like Vanguard and BlackRock, the FT said. Previously (Oct. 15), CFTC orders, Tether, Bitfinex to pay a combined fine of $42.5M