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Ex-SEC Official Calls Tether USDT A Ponzi House of Cards Scheme

Published 12/04/2022, 04:39 AM
Updated 12/04/2022, 05:00 AM
Ex-SEC Official Calls Tether USDT A Ponzi House of Cards Scheme

  • John Stark believes USDT issuer is a Ponzi scheme.
  • WSJ’s reporter claimed Tether doesn’t publish audited financial statements.
  • Tether’s financial statement shows a $2 billion increase in USDT loan issuance.

John Reed Stark, a former chief internet enforcement officer in the US Securities and Exchange Commission (SEC), has described Tether, the issuer of the largest stablecoin USDT, as a Ponzi scheme.

Stark called Tether a Ponzi scheme while reacting to an interview by CNBC with the company’s co-founder Reeve Collins, asking about its reserve. The ex-SEC official believes Tether’s ‘lack of responsiveness’ make him the Web3 firm ‘is a house of cards.’

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