According to its investment manager Hugo Rogers, Deltec has a great position in Bitcoin for its clients. Although he did not specify their names.
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Deltec Bank & Trust, the Bahamas-based bank that holds the reserves of Stablecoin Tether, has a strong position in Bitcoin, according to CIO Hugo Rogers.
Hugo Rogers revealed the investment during an annual review video, released on January 14. Specifically, comments on the position at Bitcoin were in the context of a question about Deltec’s „top calls and best picks“ for the year.
Tether, the stablecoin that keeps growing
Deltec and its great position in Bitcoin
That is why Hugo Rogers said:
„We have maintained a very significant position in the beneficiaries of maximum monetization. So that does include gold, but also other commodities“.
He added: „It also includes a large position in Bitcoin. Which has received a lot of attention recently“.
He added: „We bought Bitcoin for our clients when it was trading around $9300, so it worked very well until 2020. And, we expect it to work well in 2021, as the liquidity crisis continues to heat up.
Interestingly, Deltec did not specify the names of the clients for which Bitcoin has been retained. Most importantly, it is not clear whether Stablecoin Tether is indirectly backed by Bitcoin.
Currently, Stuart Hoegner, general counsel for Tether, stated that: „We are aware of Deltec’s statements about buying digital tokens for and on behalf of its customers.
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Tether the Deltec client
In particular, Tether’s business with Deltec was publicly Bitcoin Code scamdisclosed in 2018. Indeed, a letter published by Tether in November 2018, attesting to its relationship with Deltec, was subsequently confirmed by the bank.
Indeed, Tether is perhaps Deltec Bank & Trust’s most famous client. According to CoinMarketCap, Tether has a current supply of 24.3 billion USDT.
The Stablecoin issuer, for its part, states that every USDT is „fully backed by our reserves“ and every USDT is pegged to the dollar.
Accusations against Tether
In fact, Tether has long been the subject of public controversy and accusations of fraud. Driven by the argument that the USDT is not fully backed by reserves.
In fact, Tether is the subject of an ongoing investigation by the New York State Prosecutor. The NYAG has been investigating whether Bitfinex made loans to Tether to hide $1 billion in losses.
The investigation became public in April 2019. Just last July, the Attorney General’s office prevailed in an appeal related to the production of documents for its investigation.
To sum up, on December 9, the Attorney General’s office indicated to a New York Supreme Court judge that Bitfinex has been cooperating with the production of the document, with a requested extension of the deadline until January 15. We will be monitoring developments.