Cyber Capital Founder Accuses Tether of Being a Scam

Understanding the Allegations Against Tether

Justin Bons, the founder of Cyber Capital, has made serious allegations against Tether, a major player in the cryptocurrency world. He claims that Tether is the largest fraud in the industry, labeling it a $118 billion scam. Bons argues that the lack of transparency and the absence of formal audits are major red flags.

Comparisons to Other Scandals

Bons suggests that Tether’s potential collapse could be more damaging than previous crypto disasters, such as the Terra Luna incident. He even compares it to infamous financial scandals like FTX and Bernie Madoff, emphasizing the scale and potential impact of Tether’s operations.

Concerns Over Governance and Audits

One of the key issues highlighted by Bons is Tether’s governance and audit practices. He claims that Tether has not conducted a proper audit since 2015 and accuses the company of holding collateral without proof and falsifying documents. These allegations raise concerns about the company’s management and financial practices.

Tether’s Response and Legal Challenges

Despite these accusations, Tether maintains that it is fully transparent. The company asserts that its tokens are pegged 1-to-1 with fiat currency and backed by reserves. Additionally, Tether has taken steps to combat crypto crimes by blacklisting wallets linked to North Korean groups.