Tether Continues to Move USDT From its Treasury to Unknown Wallet

By Prashant Jha

Ever since the lawsuit against BitFinex and Tether (USDT), there has been a peculiar movement of funds from the USDT treasury to unknown crypto wallets. Only a few days ago Tether moved around $10 million worth of USDT from its treasury to an unknown wallet and now it has moved around $10 million worth of USDT to the same unknown wallet it did the last time.

Whale Alert, a twitter handle which tracks the various transaction of cryptocurrencies reported the movement of  9,990,000 USDT, worth $10 million from the Tether treasury to an unknown wallet. The transaction took place on the 27th of May at 06:24:35 UTC.

The receiving wallet address then sent around 2,000 USDT to another wallet address. There has been a pattern of the movement of USDT from the treasury of Tether to unknown wallets. The unknown wallet in question has sent the received fund to another wallet address which is from Binance, and most of the transactions from the wallet has been in stable coins.

The market supply of Tether has swelled by $100 million in a matter of 70 days giving rife to pumping rumors. Tether has been accused of pumping its market supply in 2017 as well. The current pattern of millions of Tether being sent from the treasury to the unknown wallets has again got everyone guessing about the pumping rumors.

Mind you the last reported transfer of around $10 million worth of USDT was also sent to the same wallet address. The current USDT balance of the address stood at 6,490,000 USDT.

Final Thoughts

Tether and Bitfinex had been in hot waters ever since the news about Bitfinex covering its losses worth $850 million using the Tether reserve came into the public domain. Interestingly both Tether and Bitfinex share the same parent company which makes the covering of losses by Bitifnex equivalent to fraud.

Since then many more developments have surfaced like not all of Tether USDT reserves are backed by US Dollar and only 70% of the total reserves are backed. Another revelation suggests that Tether has used Bitcoin as a backup reserve instead of the US dollar as pre-dominantly believed.