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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Episode links:

Gregory Pepin:

Deltec Bank:


Crypto Anonymous’s Medium post:

Deltec having large position in bitcoin:

Original video in which Deltec mentions its “large position in bitcoin”:

Deltec banking Tether:

Tether not audited:

Tether says it is fully backed:

Tether current balances:

What Tether is backed by:

New York Attorney General’s office press release on investigation into iFinex:

CoinDesk on NYAG investigation:

Link to the Crypto News Recap: