Leer seller Hindenburg sets a bounty of $ 1 million for details on the reserves of Tether

The Leer seller Hindenburg Research has its sights and starts a “bounty” program of $ 1 million for information about the StableCoin company at the center of the global cryptocurrency market.

Hindenburg's announcement follows less than a week after the US raw material supervisory authority Tether had a fine because of allegations that she had incorrectly shown that her digital tokens of the same name were completely covered by dollars.

The increasing review of Tether takes place at a time when an increasing number of mainstream investors want to open up the rapidly growing market for digital assets. The group is the largest issuer of stable coins, assets that help connect traditional markets to the digital asset sector with around $ 70 billion in circulation.

The coins of Tether are often used when trading cryptocurrencies, but the group only offers general information on the types of assets that support the tokens and no detailed breakdown of their portfolio.

"We are firmly convinced that Tether should completely and thoroughly disclose his public stocks," said Hindenburg founder Nathan Anderson. "In the absence of this disclosure, we offer everyone who can provide us with exclusive details about the alleged reserves of Tether, a bounty of $ 1 million."

Hindenburg said in his announcement that it does not keep any positions that set the falling or increasing tether, bitcoin or other cryptocurrencies.

tether did not respond to a request to comment on Hindenburg's announcement.

The letter marks Hindenburg's first offer of a bounty for information. The empty seller group is known to bring some of the most popular companies to the stock exchange via special acquisition vehicles, including the electric truck start-up Nikola and the sports betting company Draftkings.

Before he became a well-known empty seller, Anderson specialized in researching and uncovering fraudulent investment plans and refining his skills under the guidance of Harry Markopolos, the investigator, who is known to mark Bernard Madoff's Ponzi scheme.

Last week

Tether agreed to pay Commodity Futures Trading Commission a penalty of $ 41 million because they had made misleading statements from at least June 2016 to February 2019 to cover any of their stable coins in circulation. Tether admitted no liability or denied it. His practices in connection with the creation of new coins are also in focus, after Celsius Network, a great customer, said that Tether issues new stable coins in exchange for collateral in the form of cryptocurrencies such as Bitcoin.

In contrast to Tether's obligation to issue units of the largest stable coin in the world only against hard currency.

The supervisory authorities also pay attention to developments in the StableCoin industry in general and warn of the potential effects on both customers and general financial stability as well as risks such as money laundering and market manipulation.

In September, the chairman of the Securities and Exchange Commission, Gary Gensler, StableCoins compared to "poker chips". This month, the global supervisory authorities presented potential plans to regulate stable coins in accordance with payment systems and called for "little or no credit or liquidity risk".

In the past,

tether repeatedly said that his tokens are "completely covered by assets that are sufficient to cover the amount of tether in circulation".