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<p>Recent comments by a Tether spokesperson have <a href="https://www.bloomberg.com/opinion/articles/2023-09-21/tether-keeps-lending-tethers" rel="noopener noreferrer nofollow">rekindled controversy</a> and speculation surrounding the company's financial activities, particularly concerning its lending practices.</p> 
<p>These comments <a href="https://x.com/jp_koning/status/1705185586892435837?s=46&amp;t=dYF0hpz-gFc8HcetSehFUQ" rel="noopener noreferrer nofollow">appear to confirm</a> longstanding conspiracy theories about the stablecoin issuer.</p> 
<h2 id="unstable-claims">Unstable claims&nbsp;</h2> 
<p>A recent Wall Street Journal <a href="https://www.wsj.com/finance/currencies/tether-is-lending-its-stablecoins-again-b11705f2?mod=itp_wsj" rel="noopener noreferrer nofollow">piece</a> by Jonathan Weil delves into Tether's latest quarterly financial update, revealing a significant uptick in loans, despite previous assertions from the company that it would curtail such practices. The cryptocurrency issuer reportedly resumed lending its stablecoins, disclosing $5.5 billion in loans as of June 30, up from $5.3 billion the previous quarter.</p> 
<p>Alex Welch, identified as a Tether Holdings spokeswoman, confirmed the company's reengagement in lending, marking a shift from its December 2022 announcement that it would phase out its secured loans during 2023. Welch stated that <a href="https://u.today/tether-usdt-finally-drops-its-initial-platform-omni-heres-why?amp" rel="noopener noreferrer nofollow">Tether</a> made these loans to "prevent any significant depletion of our customers' liquidity or the need for them to sell their collateral at potentially unfavorable prices," suggesting a protective stance toward its borrowers and the broader crypto ecosystem.&nbsp;</p> 
<p>Tether's borrowers, primarily major crypto investors, leverage these loans to secure financing against their crypto collateral, potentially mitigating market impacts, like asset price drops due to forced liquidations.&nbsp;</p> 
<h2 id="tether-s-retort">Tether's retort</h2> 
<p>In response to the WSJ article, Tether's CTO, Paolo Ardoino, took to X (formerly Twitter) to <a href="https://x.com/paoloardoino/status/1705209063892549719?s=46&amp;t=dYF0hpz-gFc8HcetSehFUQ" rel="noopener noreferrer nofollow">refute</a> the claims, stating that the person cited as a spokesperson does not work for Tether and accusing both the WSJ and Bloomberg of propagating unconfirmed information and being biased against the leading stablecoin issuer.&nbsp;</p> 
<p>Ardoino emphasized Tether's financial stability, citing excess reserves exceeding $3.3 billion and an on-track profit of $4 billion per year.</p> 
<p>He reiterated the company's commitment to reducing exposure to secured loans, contrasting Tether's actions with other entities that, according to him, have not made responsible moves.</p>

Did Tether Spokesperson Just Confirm Major Conspiracy?

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