Thursday, July 25, 2024

A contentious issue has emerged involving Alex Welch, who has been described in multiple articles as a representative for Tether, the firm responsible for issuing USDT. The uproar began last week following an article in the Wall Street Journal (WSJ) that cited her as an authoritative source on the company’s lending activities. In contrast, Tether’s CTO, Paolo Ardoino, repudiated any association between Welch and the stablecoin enterprise, lambasting the editorial standards of the publication in question.

Disputed Affiliation of Alex Welch Ignites Controversy

Alex Welch has been identified in several pieces as an official mouthpiece for Tether, the organization engaged in the issuance of the stablecoin USDT. Welch became a subject of controversy after being named as an informant on matters pertaining to the escalation of Tether’s unfulfilled loans. The article, penned by WSJ’s Jonathan Weil, came under fire from the company, which labeled it as “sensationalist journalism” in an official press release.

In the report, Welch is cited as having disclosed details about these loans, stating that the company had fielded loan applications from long-term clients, ultimately choosing to fulfill these requests.

Previous news stories had also involved Welch in connection with Tether. Specifically, a Bloomberg article published in July 2022 introduced her as a spokesperson for the firm, stating that the company had maintained a “cautious” approach regarding its commercial paper holdings amidst speculation of holding Chinese commercial papers.

Furthermore, an additional WSJ piece by Jonathan Weil, dated December 1, referenced Welch yet again, stating that the secure loans disclosed at the time were transacted and denominated in USDT.

Tether Disavows Any Connection

In a message disseminated via X (previously known as Twitter), Tether’s CTO, Paolo Ardoino, flatly denied that Welch held any official capacity at Tether.

He elaborated:

The individual identified by WSJ as a source neither serves as a spokesperson for Tether nor is employed by the company, as the individual has consistently maintained in correspondence with the publication. Such actions are typical of tabloid journalism.

Ardoino also took aim at Bloomberg for its journalistic standards, contending that the news organization often relied on unverified data. Ardoino asserted:

As per usual, Bloomberg circulates articles grounded on unsubstantiated information—gleaned from secondary sources who themselves are far removed from any direct knowledge concerning Tether.

In closing, Ardoino underscored Tether’s ongoing commitment to maintain its reserve portfolio until such time as secured loans are no longer a component.

Your thoughts on the stand-off between Tether and media outlets like WSJ and Bloomberg are welcomed in the comments section below.

Frequently Asked Questions (FAQs) about Tether Spokesperson Controversy

What is the main controversy involving Tether and Alex Welch?

The controversy revolves around Alex Welch, who has been presented in several articles as a spokesperson for Tether. Tether’s CTO, Paolo Ardoino, has officially denied any association between Welch and the company, sparking a dispute with mainstream media outlets like WSJ and Bloomberg.

Who is Paolo Ardoino?

Paolo Ardoino is the Chief Technology Officer (CTO) of Tether, the company responsible for issuing the stablecoin USDT. He has publicly repudiated any connection between Alex Welch and Tether and has criticized the journalistic practices of WSJ and Bloomberg.

What did the Wall Street Journal article claim?

The Wall Street Journal (WSJ) article, authored by Jonathan Weil, cited Alex Welch as a source of information concerning an increase in Tether’s unfulfilled loans. The article has been labeled as “sensationalist journalism” by Tether.

How has Bloomberg been involved in this controversy?

Bloomberg published an article in July 2022 that identified Alex Welch as a spokesperson for Tether. The article suggested that Tether had been cautious in its commercial paper holdings, specifically in relation to Chinese commercial papers.

What is Tether’s official stance on the controversy?

Tether has officially denied that Alex Welch is a spokesperson or an employee of the company. Paolo Ardoino, the CTO of Tether, criticized both WSJ and Bloomberg for publishing articles based on unverified information.

How has Tether responded to allegations concerning its loans?

Tether remains committed to its current reserve portfolio and plans to continue until secured loans are no longer part of the reserves. This point was emphasized by Paolo Ardoino in his public statements.

What do the terms “stablecoin” and “USDT” refer to in this context?

In this context, a stablecoin is a type of cryptocurrency designed to have a stable value by being pegged to a reserve, such as the U.S. dollar. USDT is the specific stablecoin issued by Tether.

What has been the general reaction to this controversy?

The text does not provide information on the general public’s reaction to this controversy. However, the issue has certainly put journalistic ethics and practices under scrutiny, particularly those of WSJ and Bloomberg.

More about Tether Spokesperson Controversy

  • Tether’s Official Statement on Alex Welch
  • Wall Street Journal Article on Tether’s Loans
  • Bloomberg’s July 2022 Article on Tether
  • Paolo Ardoino’s Public Statement on X
  • Overview of Stablecoins and USDT
  • Ethics in Journalism: Case Studies
  • What Are Commercial Papers in Finance?

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8 comments

Sarah_in_Finance September 26, 2023 - 3:06 pm

Tether says they’re committed to their reserve portfolio. but questions still linger. Whats actually backing USDT?

Reply
FinExpert September 26, 2023 - 9:24 pm

Ardoino seems pretty defensive. Makes you wonder what they’re hiding, right?

Reply
JaneQPublic September 26, 2023 - 10:30 pm

Journalistic integrity is at stake, both sides got some explainin to do. and what’s up with using “X” instead of Twitter?

Reply
Mike_the_Analyst September 26, 2023 - 11:41 pm

Anyone else concerned abt the impact on stablecoin market? this could ripple through the whole crypto space.

Reply
JohnDoe42 September 27, 2023 - 1:02 am

Wow, this Tether thing is gettin’ messier by the day. Whos tellin the truth here?

Reply
TechGuru September 27, 2023 - 3:16 am

ardoino criticizes everyone but doesnt really clarify the situation. classic move, im not buying it.

Reply
CryptoFan101 September 27, 2023 - 6:37 am

Tether needs to clean up their act, seriously. The stablecoin market doesn’t need this kinda drama.

Reply
PoliticalWatcher September 27, 2023 - 1:22 pm

This sort of controversy is why regulation is coming. Just watch.

Reply

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