- A report suggests that crypto firm Alameda Research may have minted up to $40 billion worth of Tether’s USDT, accounting for a significant portion of the total supply.
- Challenges arise in tracking the redemptions of USDT processed by Tether for Alameda Research, complicating the analysis of their involvement.
- Mixed reactions have surfaced within the crypto community, with connections being drawn between the report and the ongoing criminal trial of Alameda Research’s founder, Sam Bankman-Fried.
A report suggests that Alameda Research, a bankrupt crypto firm, may have been responsible for minting approximately $40 billion worth of Tether’s USDT. Coinbase director Conor Grogan analyzed the data, indicating that Alameda Research accounted for around 47% of USDT’s circulating supply. This article explores the findings from the report and the implications it raises for the industry.
Alameda Research’s Role in USDT Minting
According to the analysis by Coinbase director Conor Grogan, Alameda Research could potentially have minted up to $40 billion of Tether’s USDT. This amount represents a significant portion of the total supply of USDT in circulation. It is noteworthy that the minted USDT exceeded Alameda Research’s assets under management (AUM) during the peak of the cryptocurrency market.
Grogan highlighted the difficulty in obtaining precise information about redemptions processed by Tether for Alameda Research. Tether appears to coordinate off-chain burns without using deposit addresses, which complicates the tracking of redemptions. Grogan estimated that Alameda Research redeemed approximately $3.9 billion of USDT, with most of it happening during the Luna implosion in May.
Reactions from the Crypto Community
The report has prompted mixed reactions within the crypto community. Observers are drawing parallels between the ongoing criminal trial of Sam Bankman-Fried, the founder of Alameda Research and FTX, and the insights provided by witness testimony. Testimony from FTX’s co-founder, Gary Wang, revealed details about how Alameda could withdraw customer funds, maintain negative balances, and engage in high-speed trading on the platform.
Tether, the issuer of USDT, declined to comment on Conor Grogan’s investigation. The company stated that it does not provide comments on its customers’ transactions as a matter of policy. Tether emphasized that all operations were conducted in line with their standard issuance payment requirements.
USDT’s Dominance in the Crypto Market
With a market capitalization of $83.51 billion and a trading volume of $18.22 billion in the last 24 hours, Tether’s USDT remains the dominant stablecoin in the cryptocurrency market. Despite the allegations presented in the report, the demand and usage of USDT continue to be widespread.
Conclusion
The report’s allegations regarding Alameda Research’s potential involvement in minting a substantial amount of USDT raise important questions about transparency and accountability in the crypto industry. As the dominant stablecoin, the ongoing scrutiny of Tether’s operations will likely have ramifications for the broader cryptocurrency market.
