Tether, Circle, Coinbase deny having exposure to FTX, Alameda | The Financial Express

Tether, Circle, Coinbase deny having exposure to FTX, Alameda

Armstrong also stated that the cryptocurrency exchange has no ties to Alameda.

Tether, Circle, Coinbase deny having exposure to FTX, Alameda
. The exchange executive also chastised the event for risky business practises such as the misappropriation of customer funds and conflicts of interest.

In the aftermath of the liquidity crisis that engulfed crypto exchange FTX and trading firm Alameda Research, some of the largest crypto companies are facing calls for transparency to inform users of potential risks, as reported by Cointelegraph.

Executives, however, assured the community that they had no exposure to either of the troubled firms.

Tether chief technology officer Paolo Ardoino clarified in a tweet in response to concerns raised by the crypto community that the stablecoin issuer has no exposure to either of the distressed firms. Alameda has previously redeemed a large amount of Tether, according to the Tether executive. Regardless, Ardoino stated that no credit exposure has matured.

Brian Armstrong, the CEO of cryptocurrency exchange Coinbase, also used the occasion to reassure users that the company has no material exposure to FTX or FTT. Armstrong also stated that the cryptocurrency exchange has no ties to Alameda. The exchange executive also chastised the event for risky business practises such as the misappropriation of customer funds and conflicts of interest.

As the FTX and Alameda crises unfolded, Binance CEO Changpeng Zhao promised to implement a Proof-of-Reserve mechanism based on Merkle Trees to provide full transparency of its reserves. Aside from Zhao, other prominent industry figures have endorsed the use of Proof-of-Reserves to increase consumer confidence and establish trust within the industry.

Also Read: Cryptocurrencies fall after FTX-Binance turmoil spooks investors

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First published on: 09-11-2022 at 18:23 IST