Tether Is the Biggest Crypto Scam Ever, Warns Cyber Capital Founder

In a recent fiery discussion on X, Justin Bons, founder of Cyber Capital, has unleashed strong criticism against Tether, calling it the largest fraud in the cryptocurrency world.

Bons contends that Tether’s alleged misconduct dwarfs the scandals of FTX and Bernie Madoff, accusing the stablecoin issuer of lacking transparency and bypassing necessary audits.

Bons labeled Tether’s operations a $118 billion scam, pointing out the company’s failure to substantiate its claims of reserve backing with a legitimate audit. Despite promises dating back to 2015, no formal audit has been conducted, which Bons describes as “counterfeit money.” He warns that the potential collapse of Tether could be more devastating than the Terra Luna disaster, given the scale of USDT in circulation.

Criticism also extends to Tether’s governance and its questionable history. Bons criticized the company’s audit practices, noting that a thorough audit in 2018 was allegedly dismissed, and recent reports by BDO were merely “accountant’s reports” rather than comprehensive audits. He also expressed concern over Tether’s minimal board structure, suggesting it may contribute to mismanagement.

Tether is facing ongoing legal issues, including a recent lawsuit from Celsius Network accusing it of fraudulent Bitcoin transfers. Meanwhile, Tether’s CEO has rejected these claims, describing the lawsuit as a mere attempt to extract funds.

Despite these controversies, Tether, alongside other stablecoin issuers, has taken steps to combat illicit activities by blacklisting accounts linked to North Korean hackers.