Tether claps back at Deutsche Bank when it questioned the stability of its stablecoin
Deutsche bank said that Tether’s stablecoin was questionable. Let’s look at the history of Deutsche Bank.
Deutsche Bank recently released a report suggesting that stablecoins, including USDT, would negatively affect the crypto industry, citing the 2022 collapse of TerraUSD (TUSD), seeing $40bn wiped from the market.
The bank also said that Tether lacked transparency with its reserves and questioned the solvency of the firm. Tether clapped back, saying it lacked clarity and substantial evidence, per Coinbase.
Here’s some of the notable falls of Deutsche Bank.
- 2013 — Faced a $1.9bn penalty for its involvement in the US mortgage crisis involving subprime mortgages, per DW.
- 2013 — It paid a €725m (worth $780m) to the European Commission in relation to interest rate manipulation. It was later fined $2.5bn by British and US authorities.
- 2015 — While negotiating with US authorities, investigators found the bank used stock transactions to launder $10bn worth of “dirty money” Russian rubles, resulting in a $600m penalty and the decision of Deutsche Bank to terminate Russian investment banking practices.
- 2015 — Paid $260m for fines for violating existing US embargo on Iran.
- 2017 — Settled with US authorities, paying $7.2bn.
- 2020 — Paid a $150bn fine for its involvement in banking Jeffery Epstein, uncovering that the bank knew but did nothing.
These are among the major scandals involving Deutsche Bank but there are still other incidents including bribery events internationally and other crimes in which the bank was fined for.
It was also found banking suspicious transfers worth €200m (worth $215m USD) from 2007 to 2015. The bank invested billions to improve internal audit and added 1,500 employees to the oversight department.
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