As of 2018, four people controlled 86% of stablecoin issuer Tether:
According to the Wall Street Journal, which viewed investigatory documents from 2021 probes conducted by the New York Attorney General and the Commodity Futures Trading Commission, four individuals were found to control 86% of Tether's total supply as of 2018. Tether is a popular cryptocurrency, often used to purchase other digital assets, and it is considered a stablecoin because it is pegged to the US dollar. The previously unknown ownership structure has raised concerns about potential manipulation in the cryptocurrency market.
The individuals behind Tether have been previously non-forthcoming about their operations, with Tether originating from companies led by former plastic surgeon Giancarlo Devasini and former child actor Brock Pierce. Devasini, who helped develop the crypto exchange Bitfinex and is now its CFO, owned approximately 43% of Tether in 2018. Two other executives of both Bitfinex and Tether, CEO Jean-Louis van Der Velde and Chief Counsel Stuart Hoegner, each controlled around 15% of Tether. The fourth major owner, Christopher Harborne/Chakrit Sakunkrit, held 13% of Tether.
Tether declined to comment on its ownership structure to the Wall Street Journal, and a spokesperson did not immediately respond to a request for comment by CoinDesk. Following the publication of the WSJ article, Paolo Aordino, the CTO of Bitfinex and Tether, called the article "a clown piece" and stated that "People understand that Tether is standing for freedom and inclusion."
The concentration of power in the hands of a few individuals highlights the need for increased transparency and decentralization in the crypto industry to ensure a fair and stable market for all participants.
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