As the cryptocurrency world remains abuzz with Sam Bankman-Fried’s ongoing FTX fraud trial, another riveting subplot is beginning to unfold. Crypto influencer Dylan LeClair has recently ignited a tweetstorm that questions the staggering amount of Tether (USDT) minted and redeemed by Alameda Research. The in-depth scrutiny adds another complexity to an already convoluted narrative, focusing on FTX and Alameda’s perplexing relationship with Tether.

The Real Story of Alameda’s Billions in Tether

In a sequence of tweets, LeClair revealed that Alameda minted a staggering 36 billion USDT while redeeming a mere 4 billion, leaving a net figure of over 30 billion USDT in the equation. Given Tether’s claim to be backed by the U.S. dollar, this revelation begs the question: “Where is the corresponding $30 billion?”

LeClair takes the discussion further by stating, “Presumably, there was a massive amount of USD that had to be wired to Tether to mint all those billions.” Yet, as the FTX trial unfolds, no light has been shed on this transaction between Alameda and Tether. The omission raises eyebrows and adds to the intrigue surrounding these enormous sums.

Another fascinating point LeClair brings up is the curious pricing disparity on Alameda’s FTX exchange. Despite being the largest minter of Tether, Alameda valued other stablecoins at 1.0 on their exchange while giving USDT a value of 0.95-0.975. Could this be a telltale sign of something more ominous?

LeClair concludes his tweet series with a staggering fact: 60% of the Genesis book over this past summer was made up of loans extended to Alameda. These loans were mainly secured with FTT tokens as collateral. “Absolute insanity,” as LeClair aptly puts it, highlighting a potential systemic risk within the crypto industry.

As the FTX trial continues, LeClair’s eye-opening tweets are prompting the community to scrutinize Alameda Research and its complex dealings. Peter Easton, an accounting professor at the University of Notre Dame, has already disclosed FTX’s use of over a billion dollars in customer funds for various purposes— from real estate and political contributions to business investments.

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