Tether has indicated that it has no plans to invest cash into FTX, despite the CEO allegedly approaching many companies for assistance. As it struggles to close a purported multi-billion dollar hole in its financial sheet, cryptocurrency exchange FTX has lost at least one possible savior.
On November 10, Tether’s CTO, Paolo Ardoino, affirmed the company has no plans to invest or lend money to FTX/Alameda.
Ardoino made his remarks in response to a Reuters report from Nov. 10 that said the $9.4 billion gap at FTX had FTX CEO Sam Bankman-Fried reaching out to many businesses for funding to keep the exchange solvent.
Tether, the cryptocurrency exchange OKX, and the venture capital firm Sequoia Capital are among the businesses that Bankman-Fried is said to have approached for funding. It is said that he has requested at least $1 billion from each of the organisations.
The sentiment expressed in a blog post by Tether on November 9 that assured the community that it has no exposure to Alameda or FTX appears to be reflected in the CTO’s answer.
In order to cooperate with law authorities, the stablecoin issuer reportedly frozen 46,360,701 USDT held by FTX in its Tron blockchain wallet on November 10.
It is unclear at this time whether OKX or Sequoia Capital are thinking about supporting the troubled exchange.
To aid with FTX’s liquidity concerns, Bankman-Fried requested up to $4 billion from the exchange, although Lennix Lai, director of financial markets at OKX, earlier told Reuters on Nov. 9 that the company had not yet decided whether or not to support FTX.
Tether Freezes $46M USDT
According to a recent report, Tether has recently frozen $46 million USDT at the request of the police. The trustworthy stablecoin has cooperated with the demand, which might be related to the FTX exchange.
There isn’t much information available about the investigation’s scope or goals; we just know that it’s happening. “We are starting to receive requests from LE to temporarily freeze assets while an investigation occurs,” a Tether executive told local media.
“USDT tell 3% from its $1 peg earlier today as contagion continues to spread following FTX’s woes,” was also mentioned to the statement. The USDT is marginally anchored below $1, according to the report’s conclusion.
Then word spread that the USDT that had been frozen belonged to one address that belonged to FTX. A halt to withdrawals due to liquidity difficulties has shaken the platform just days after the Binance saga.
It is unclear whether this probe is anyway connected to FTX or if it has something to do with Tether only. Tether has not yet made a formal announcement on its own behalf.