“Tether is running a Ponzi scheme.”

John Reed Stark, a former U.S. Securities and Exchange Commission (SEC) official, on Dec. 2 accused Tether of “running a Ponzi scheme” due to a lack of clarity about its stablecoin reserves. Tether is the issuer of USDT, the main stablecoin in the market.

The former official is statement on their social media regarding a recent television interview given by Reeve Collins, founder of the Tether company.

Collins was asked about the company’s reserves. Many question how it is possible that Tether has not made its finances public, giving an “incomplete picture” of the state of the company.

The founder merely commented that “in the last 6 years” every USDT has been. Redeemable 1:1 with USDTs. On reserves, Collins commented only that Tether is “increasingly transparent.” It is worth noting that Collins sold the company in 2015, so he has not worked with the company for seven years.

For Stark, Tether’s founder’s statements are not transparent enough. He also accuses the company of being “unresponsive.” stating that it is possible that they are running a Ponzi scheme.

Stark, now president of a digital assets law firm, wrote in various occasions when Tether’s finances show signs of possible fraud. The former official considers that Tether backups are a mystery, so it could be a “house of cards Earth-style.”

Stark has been a great detractor of anything related to stablecoins, particularly tether (USDT). On his Twitter account he has called this stablecoin a “Ponzi” on several occasions. With the Celsius fallStark took the opportunity to comment That, according to his predictions, the fall of the USDT would have been much worse.

Tether (USDT)is the stablecoin with the largest market capitalization at more than $65 billion, just behind bitcoin (BTC) and ether (ETH). Control of the issue, as well as USDT’s reserves, is controlled by Tether.

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After the FTX bankruptcymany companies, especially stock exchanges, have filed for bankruptcy. proof of reservation To try to maintain the trust of its customers.

Verified public reserves can be viewed on Tether’s web portal. Last October, CryptoNews reported That the company has traded more than $30 billion (nearly 50 percent of its reserves) in commercial paper (debt of private companies) for U.S. Treasury bonds, considered a much safer investment.