Following the liquidity crunch that beset trading firm Alameda Research and cryptocurrency exchange FTX, some of the largest cryptocurrency organizations are facing calls for transparency in order to alert customers to potential risks.
In light of this, several company executives have come out publicly denying any claims that they have any connection with any troubled company.
Regarding the concerns raised by the crypto community, Tether’s CTO, Paolo Ardoino, confirmed in a tweet that Tether is not affiliated with FTX or its sister company, Alameda.
To be clear: #Tether does not have any exposure to FTX or Alameda. 0. Null.
Maybe is time to look elsewhere.
Sorry guys. Try again. https://t.co/1bRNUGrttr— Paolo Ardoino
(@paoloardoino) November 9, 2022
Paolo also stated:
“Alameda has issued and redeemed lot of USDt in the past.
But no credit exposure has been matured.
Tether is issued and redeemed upon market demand by our customers.”
Brian Armstrong, the CEO of Coinbase, took the opportunity to reassure users that the company has no significant exposure to FTX or FTT.
2/ Second, Coinbase doesn’t have any material exposure to FTX or FTT (and no exposure to Alameda).
— Brian Armstrong (@brian_armstrong) November 8, 2022
Brian added in a tweet,
“I think it’s important to reinforce what differentiates Coinbase in a moment like this. This event appears to be the result of risky business practices, including conflicts of interest between deeply intertwined entities, and mis-use of customer funds (lending user assets).”
Circle’s CEO, Jeremy Allaire, also dismissed claims that the company had any exposure to FTX and Alameda.
2/ Circle has no material exposure to FTX and Alameda. FTX has been a customer of Circle Payment APIs for the past 18 months, providing card and ACH services for customer transactions. Circle’s crypto payments beta product uses FTX and other exchanges, for BTC/ETH liquidity.
— Jeremy Allaire (@jerallaire) November 9, 2022
Jeremy also stated:
“Circle has never made loans to FTX or Alameda, and has never received FTT as collateral, and has never held a position in or traded FTT. In any case, Circle does not trade on its own account.”
Despite the executives’ assurances, several members of the crypto community remain dissatisfied and demand accountability.
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