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Tether Is Being Hunted, Mike Alfred Claims


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Alex Dovbnya

Alfred’s comment comes after bombshell report about coordinated effort by exchanges to allegedly save Tether (USDT)

Value investor and Bitcoin enthusiast Mike Alfred alleges that Tether, the largest stablecoin issuer, is likely being “hunted” by short sellers.

Moreover, he adds that Binance, the largest crypto exchange, is supposedly vulnerable if Tether goes underwater.

Alfred’s rather sensationalist statements come after The Wall Street Journal leaked private text messages between Binance CEO Chapeng Zhao and FTX founder Sam Bankman-Fried, in which the former urged his then-rival not to destabilize the stablecoin market.

Zhao and some other market players were concerned about Alameda Research, FTX’s sister exchange, potentially hurting Tether’s USDC, which would potentially lead to the stablecoin losing its peg.

The above-mentioned messages were exchanged in a group on the privacy-focused app Signal called “Exchange Coordination.” Alfred claims that the name of the chat itself “gives him shivers.” Apart from Zhao and Bankman-Fried, the group allegedly included Tron boss Justin Sun and Tether CTO Paolo Ardoino. The latter also feared that FTX and Alameda’s efforts could potentially lead to the de-pegging of the USDT stablecoin.

Alfred argues that Zhao will not be able to stop private investment firms, such as New York-based Fir Tree, from betting against USDT, and they might smell blood in the water.

In a separate tweet, the Bitcoin enthusiast also accused Zhao of being “desperate” to keep deposits flowing to the exchange by advocating against self-custody.

Earlier today, the Binance boss defended the exchange’s financial position during a CNBC interview that touched upon withdrawal issues, among other things.


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