A viral post on X by crypto analyst Deso has raised serious questions about the stability of Tether (USDT)—the world’s largest stablecoin. Deso claims Tether may not be fully backed by real US dollars, but instead by borrowed money and risky financial loops, potentially endangering the entire crypto market.

Analyst Warns of Ponzi-Like Structure Behind Tether

Tether, designed to maintain a 1:1 peg with the US dollar, is widely used in crypto trading and DeFi. However, Deso alleges that real dollar backing may be missing. According to his analysis, firms are leveraging borrowed funds to buy USDT, converting it into crypto like Bitcoin, and then selling it for dollars—repeating the cycle.

The key players he names: Abraxas, Cumberland, and Wintermute. These firms allegedly rely on high crypto prices and constant demand to sustain the loop.

If prices fall or demand dries up, the system could collapse, leaving borrowed money unpaid—a setup Deso likens to a Ponzi scheme.

Tether’s El Salvador Move Raises Eyebrows

In a separate post, Deso highlighted that Tether recently shifted its headquarters to El Salvador, a nation without an extradition treaty with the U.S.

He also flagged that Tether’s co-founder, Giancarlo Devasini, now controls at least $150 billion in USDT, as per blockchain tracking tools like Arkham Intelligence.

Deso has called on journalists, investigators, and the wider crypto community to scrutinize Tether’s reserves and operational practices more closely.

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