According to a recent report, Puerto Rican financial institution, Noble Bank has been struggling to survive in the cryptocurrency market. The report stated that the institution is financially unstable and is doing its best to find funding.
Furthermore, a large number of assets which came into the Nobel bank were in the form of Tether’s U.S dollars. The bank has been trying to find large investors who could help them buy some USDT to get a cash lifeline but their plea has been rejected. They further added:
“If Noble doesn’t get cash soon, they will only have a few days left…… They’re desperate”
The recent data shows that Noble Bank was the primary reserve bank of Tether. The CEO of Noble bank, John Betts worked with the Co-Founder of Tether, Brock Pierce before the creation of either of the companies. Tether which is reportedly backed by the U.S dollar was recently accused of buying cryptocurrencies with defective tokens which were not backed by the U.S dollar.
A spokesperson told Modern Consensus that Tether had recently been going through several problems. Furthermore, an individual was trying to dump “tens of millions of Tether” without finding a potential buyer.
Tether community was threatened by the launch of two new stablecoins, Gemini dollar and Paxos. Both the stablecoins were audited by the New York Department of Financial Service. However, Tether had lost its main auditor Friedman LLP in January, after which they claimed that auditing Tether was impossible.
Developers of the Paxos stablecoin created a backdoor which allowed law enforcement or anyone with administrative access to freeze the wallet or even destroy the funds of its users. Paxos also claimed to provide a monthly report of their balance sheet which would be audited by top professionals. Gemini dollar is another stablecoin which focusses on targeting Tether, which has predominantly established itself in the stablecoin space.
The post Tether [USDT]’s primary reserve bank has been struggling financially, sources say “they’re desperate” appeared first on AMBCrypto.