Tether Claims $700 Million Net Profit in Q1 2023, Denies Contact with Silvergate, SVB and SignatureBank

On April 5th, Tether reiterated in an official post that the company had not been in contact with Silvergate, SVB, and SignatureBank, while expressing its dissatisfaction with Bloomberg’s “irresponsible” reporting and compilation of bait headlines (headline party). In addition, Tether revealed in the article that the company recorded a net profit of $700 million in the first quarter of 2023, which exceeded the fourth quarter of 2022, and Tether is optimistic about the outlook for the second quarter.

Tether: In Q1 of 2023, its net profit was $700 million, and the FUD spread by Bloomberg did not affect its business

In an official post on April 5th, Tether reacted to Bloomberg’s recent reporting about the company’s banking partners and financial performance. Here is what Tether had to say.

Introduction

Tether, the issuer of the world’s largest stablecoin USDT, has been under intense scrutiny in recent months, sparking debates about the legitimacy and transparency of its operations. Bloomberg, one of the leading financial news outlets, has been particularly critical of Tether, publishing a series of reports about the company’s banking relationships, financial statements, and market manipulation.

Tether Denies Contact with Silvergate, SVB and SignatureBank

In its latest official post on April 5th, Tether denied having any contact with three major US banks – Silvergate Bank, Silicon Valley Bank (SVB), and Signature Bank. This statement conflicts with Bloomberg’s findings that the three banks hold accounts for Tether and its parent company Bitfinex, which have been intermingling clients’ funds and using them to cover up losses and missing funds.
Tether accused Bloomberg of cherry-picking and exaggerating some minor details while ignoring the bigger picture, which is that Tether is committed to improving its banking relationships and financial transparency. Tether stated that it is in the best interest of stablecoin users and the wider crypto community to collaborate with reputable banks that can provide reliable services and compliance with regulatory standards.

Tether Reports $700 Million Net Profit in Q1 2023

In the same official post, Tether also announced its financial performance for the first quarter of 2023, claiming a net profit of $700 million, which surpassed the previous quarter’s profit of $500 million. Tether attributed the strong growth to the increasing adoption of USDT in global trade, capital markets, and decentralized finance (DeFi).
Tether emphasized that it has always maintained a 1:1 peg to the US dollar and that all USDT circulating in the market are backed by real assets and reserve capital. Tether also revealed that it has appointed a new auditor, Moore Cayman, to conduct regular attestation and monitoring of its reserve holdings and financial operations.

Tether’s Outlook on Q2 2023

Finally, Tether expressed optimism about the upcoming quarter, stating that it expects to continue its momentum and bring new innovations to the stablecoin market. Tether hinted at potential collaborations with leading financial institutions and blockchain projects, as well as launching new versions of USDT on different blockchain platforms.

Conclusion

Tether’s official post on April 5th has stirred up more controversy and skepticism about the stablecoin and its operations. While Tether denied the accuracy and credibility of Bloomberg’s reporting, it did not provide any conclusive evidence to refute the allegations. Moreover, Tether’s assertion of a $700 million net profit might raise questions about its business model and risk management, as stablecoins are supposed to have minimal volatility and low returns.

FAQs

1. What is Tether’s response to Bloomberg’s reporting?
Answer: Tether denied having any contact with Silvergate Bank, SVB, and Signature Bank, and accused Bloomberg of biased and inaccurate reporting.
2. How much profit did Tether report for Q1 2023?
Answer: Tether reported a net profit of $700 million.
3. What is Tether’s outlook for Q2 2023?
Answer: Tether expressed optimism about the future and hinted at new partnerships and products in the stablecoin market.