Deltec Bank Authenticated the Letter, Confirming the Solvency of Tether

Deltec Bank Authenticated the Letter, Confirming the Solvency of Tether

A careful analysis and considerable skepticism within the Bitcoin community resulted in a letter in which the issuer of the USDT token, Tether Ltd, announces a partnership with the Deltec Bank & Trust located in the Bahamas. This writes CoinDesk with reference to the statement of the chairman of the bank Jean Chalopin.

The letter, on the basis of which it has sufficient funds to ensure the total volume of issued USDT tokens ($1,831,322,828 – at the time of the working day, October 31, 2018), Tether Ltd published on November 1. The document submitted to the public, however, was almost immediately called into question.

First of all, it was about the absence of the name of any official of the bank under the signature, which raised questions and the signature itself, which was very difficult to determine by whom the document was certified.

The questions were also caused by the wording contained in the letter that it is provided without any obligations on the part of Deltec Bank and “is solely based on the information currently in our possession.”

As explained, the correspondence between CoinDesk and the head of Deltec Bank was conducted over several days. Initially, a representative of Deltec Bank, Melanie Hutcheson, citing legal restrictions and internal rules of the bank, said that she could not share information regarding the organization’s relationship with customers.

However, Jean Chalopin joined in the correspondence, stating that the document was genuine.

“The letter published by Tether is authentic,” he told the publication.

Jean Chalopin also commented on numerous rumors that Deltec Bank was involved in money laundering, stating that such assumptions are due to stereotypes around the offshore banking industry.

“The sole fact that we are based in The Bahamas exposed us constantly to an established form of discrimination at the hand of bigger countries and other large financial institutions, under various pretexts, though we have strict and uncompromised AML/CFT policies, are fully compliant with international transparency agreements such as FATCA and CRS, and have risk management and safety financial ratios that are significantly better than most other banks.” – said the head of Deltec Bank.

The fact that Tether could find a banking partner in the Bahamas first became known in mid-October. At the same time, it was reported that Bitfinex, an affiliate of Tether, entered into a partnership agreement with Hong Kong-based Bank of Communications, partly owned by HSBC Holdings, a financial conglomerate. This information, however, has not yet received confirmation.

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