Tether incurred severe criticism after its supposed stablecoin USDT lost its value against the U.S. Dollar.
On Tuesday, the USDT/USD dropped towards 0.95 across several cryptocurrency exchanges, stirring panic among investors who were arbitraging between the crypto-assets.
On the same day, a new report surfaced about Noble Bank, Tether’s banking partner, revealing its poor financial health. The Puerto Rick bank served as a fiat gateway to it, as well as BitFinex, a well-known Bitcoin exchange. But when the bank announced that it was open for sale, both Tether and BitFinex decided to call it quits.