Alameda Minted 39.55 Billion Dollars of USDT Because of FTX Suspicious Dealings

Crypto News – According to Onchain data, Alameda issued USDT worth $39.55B. This amount represents 47% of the current circulating supply of Tether.

Alameda Minted 39.55 Billion Dollars of USDT Because of FTX Suspicious Dealings

Conor Grogan, the product director at Coinbase, recently revealed on X that Alameda Research had generated a sizable quantity of USDT based on their study of on-chain data.

They have created an astounding $39.55 billion USDT, or around 47% of the total supply of Tether that is now in circulation. Data from SBF, which indicates that the amount of USDT issued by Alameda Research exceeds the value of their Assets Under Management (AUM) at its height, further supports this information.

One of the factors generating this phenomenon is, interestingly, the off-chain destruction mechanism of Tether. Tether delivers the money it has been redeemed with to its Treasury Division directly, as opposed to a conventional deposit address. Alameda Research is responsible for all USDT redemptions from FTX, which amounts to an astonishing $3.9 billion in USDT redemptions.

Identifying and Evaluating Redemptions is Very Difficult

There is information and proof of dubious transactions involving Alameda and FTX, where they use customer deposits to make up for losses and trade. This raises additional problems because Tether has never been subjected to an independent audit, which is concerning given the dubious history of Alameda.

During the height of the cryptocurrency market, according to data provided by SBF, Alameda generated more USDT than the total assets under its management. Due to Tether’s off-chain coordination of burning, Conor noted that evaluating redemptions is challenging.