Tether CTO Paolo Ardoinosaid that such a request made by Tether is something they cannot accept and therefore they flatly refused.
Tether CTO Explains: Why Tether Refused To Help FTX During Crisis
It’s been almost two months since crypto exchange FTX filed for Chapter 11 bankruptcy, but dark details of what happened during the crisis continue to emerge even today.
Just before USDT stablecoin issuer Tether filed for bankruptcy, it received a call from FTX founder Sam Bankman-Fried.
As we know, SBF was trying to contact every possible official to prevent the sinking of the FTX ship. After the initial support, even Binance withdrew from the deal in less than 24 hours.
Tether CTO Paolo Ardoino said that SBF, seeing their empire crumble before their eyes, reached out to Tether for financial assistance. While the SBF didn’t make it clear how much money it needed, the USDT issuer “flatly refused”.
Something was clearly wrong with the request, Ardoino said, and saying no was an easy decision for them. In a speech, Tether CTO added:
“Suddenly she wanted something she’d never wanted before, and she wasn’t talking about $10 million. The way he spoke showed that he had a big problem. His request was billions of dollars.”
In early November, SBF was making desperate phone calls to save FTX from crashing, but ultimately failed.
USDT stablecoin issuer Tether has been embroiled in controversy over its $66 billion reserve. Tether’s USDT stablecoins still account for more than 50% of global Bitcoin transaction volumes.
*Not investment advice.
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