Tether (cryptocurrency)

• 1. Origins And Evolution

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  In July 2014, a startup based in Santa Monica announced the creation of Realcoin. Co-founders Brock Pierce, Reeve Collins, and Craig Sellars launched this project to exchange property without third-party intermediaries using bitcoin's computer infrastructure. The first tokens were issued on the 6th of October 2014 on the bitcoin blockchain. On the 20th of November 2014, CEO Reeve Collins announced the project was being renamed to Tether. The company entered private beta supporting three currencies: USTether for United States dollars, EuroTether for euros, and YenTether for Japanese yen. Tether Holdings Limited is incorporated in the British Virgin Islands with offices in Switzerland. It has never submitted to an independent audit. In July 2022, Tether started releasing quarterly attestations by the accounting company BDO Italia. These reports are snapshots of assets held at one moment in time with less rigorous standards than audits. As of January 2024, Tether's official website lists fourteen protocols and blockchains on which Tether has been minted. The precursor to Tether used Mastercoin protocol as its technological foundation. Brock Pierce became a co-founder while Craig Sellars served as CTO of the Mastercoin Foundation.

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• 2. Market Dominance And Growth

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  In 2019, Tether surpassed bitcoin to become the most traded cryptocurrency globally. By July 2024, Tether had more than 350 million users worldwide. The stablecoin holds 70% of the market share among all stablecoins. From January 2017 to September 2018, outstanding tethers grew from about $10 million to about $2.8 billion. During summer 2018, Tether accounted for up to 80% of bitcoin volume. On the 15th of October 2018, the tether price briefly fell to $0.88 due to perceived credit risk. In August 2024, Tether announced plans to launch a stablecoin pegged to the United Arab Emirates dirham. By 2025, the USDT token supply had surpassed US $140 billion across multiple blockchains. As of September 2024, USDT's market capitalisation surpassed US $150 billion. Tether reported holding roughly US $8 billion in gold reserves stored in a Swiss vault. The company became one of the largest buyers of Treasury bills in the world, holding more than many countries.

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• 3. Reserve Transparency Debates

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  In September 2017, Tether published a memorandum claiming tethers were fully backed by United States dollars. Independent attorney Lewis Cohen stated the document did not prove coins were backed by dollars because it was phrased carefully. The accounting firm specifically stated the information was intended solely to assist management and should not be used or relied upon by any other party. A June 2018 attempt at an audit showed a report by law firm Freeh, Sporkin & Sullivan LLP. This firm stated they are not an accounting firm and did not perform reviews using Generally Accepted Accounting Principles. Stuart Hoegner, Tether's general counsel said an audit cannot be obtained because big four firms are anathema to that level of risk. In May 2021, Tether published a report showing only 2.9% of Tether was backed by fiat USD. Over 49.6% was backed by commercial paper with the remaining amount backed by other assets. By October 2022, Tether reported reducing its commercial paper holdings to zero, replacing them with U.S. treasury bills. As of August 2024, Tether claimed holding $118.4 billion in reserves including $5.3 billion in excess reserves.

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• 4. Legal Battles And Fines

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  On the 25th of April 2019, New York Attorney General Letitia James filed a lawsuit against iFinex. The prosecution alleged Bitfinex had entrusted US$1 billion to Panamanian payment processing firm Crypto Capital Corp. Funds were commingled with corporate and client deposits without any signed contract. Prosecutors speculated funds were lost or stolen and executives could not recover up to US$850 million. On the 17th of February 2021, iFinex settled the legal dispute paying US$18.5 million without admitting wrongdoing. On the 5th of December 2017, the U.S. Commodity Futures Trading Commission issued subpoenas concerning backing of minted tokens. On the 15th of October 2021, Tether Limited paid a fine of US$41.6 million for inaccurately claiming minted USD were 100% backed by fiat USD when they were not. Before the 25th of February 2019, terms stated every tether was always backed 1-to-1 by traditional currency held in reserves. After that date, terms revised to claim tokens are 100% backed by Tether's Reserves including other assets and receivables from loans made to third parties.

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• 5. Criminal Activity Allegations

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  In October 2023, The Wall Street Journal reported Tether has been increasingly showing up in investigations tied to money laundering, terror financing, and sanctions evasion. Research firm Elliptic disputed the report saying it engaged with The Wall Street Journal to correct misinterpretations of crypto fundraising by Hamas. A report by blockchain analytics company TRM Labs found Tether was the most used stablecoin for criminal activity throughout 2023. This connected $19.3 billion in illicit transactions. The amount was larger in the previous year with $24.7 billion worth of transactions linked to criminal activity in 2022. On the 20th of November 2023, Tether reported freezing $225 million worth of its cryptocurrency linked to a human trafficking group in Southeast Asia responsible for a global pig butchering scam. In March 2024, Tether was acknowledged for seizing $1.4 million worth of Tether linked to a tech scam network. In August 2024, Tether was also acknowledged for effectuating seizure of $5 million worth of Tether stolen through a pig butchering scam.

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• 6. Corporate Expansion And Investments

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  In May 2023, Tether announced plans to establish a bitcoin mining operation in Uruguay using renewable energy. Uruguay sources more than 98% of its electricity output from renewable energy sources primarily wind and hydropower. In November 2023, Tether announced it plans to invest about half a billion dollars over the next six months to become one of the world's top bitcoin miners. That investment includes part of a $610 million credit facility extended to publicly traded bitcoin mining company Northern Data AG. In December 2023, Lugano, Switzerland started accepting cryptocurrencies including Tether stablecoin for paying taxes, fines, and all other invoices. In January 2025, the company completed relocation of Tether's global headquarters to El Salvador. By February 2025, Tether acquired a minority stake in Juventus F.C. In October 2025, Tether formalised the partnership by nominating an executive to Juventus' board of directors. In March 2025, Giancarlo Devasini was appointed Chairman and Simon McWilliams became Chief Financial Officer. Through 2025, Tether invested in energy, commodities, and infrastructure acquiring stakes in mining company Elemental Altus and South American agribusiness Adecoagro.

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