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Tether (USDT), a stablecoin that is pegged to the US Dollar, has apparently opted to combat the perceived bias of the legacy media by responding in kind.

To wit, in a newly published blog post, Tether has identified 84 articles that the Wall Street Journal has written since the start of 2022, with an overwhelming majority of those painting the firm behind the USDT stablecoin in a negative light.

As its coup de grâce, however, Tether has found 28 articles published by the Wall Street Journal on FTX, with most painting a glowing picture of the now-defunct crypto exchange.

Tether tokens, developed by the crypto exchange BitFinex and which trade under the symbol USDT, were initially backed by an equivalent number of US dollars. This meant that each USDT would always equal 1 USD. However, back in February 2019, Tether changed this policy (retrieved from archive.org) to one where the Tether coins are now “100%” backed by its “reserves”. For reference, these reserves included currency, cash equivalents (such as US Treasuries), as well as other assets and receivables from loans made by the company to third parties. In 2022, Tether completely eliminated commercial paper holdings (including Chinese ones) from its reserves.

Of course, Tether’s own past is not as pristine as it otherwise likes to portray. A 2019 investigation by the New York Attorney General concluded that the company had hidden “a loss of $850 million of co-mingled client and corporate funds.” In the ensuing settlement agreement, which barred the company from doing business in New York, it was revealed that Tether coins in circulation remained virtually unbacked for certain periods of time. Moreover, on the 15th of October 2021, the CFTC ordered Tether and BitFinex to pay fines totaling $42.5 million for falsely claiming on a number of occasions that the stablecoin was fully backed by US Dollars.

Nonetheless, despite its flaws, Tether has continued to operate seamlessly during the past few months – a period that has been characterized by unprecedented volatility. This suggests the absence of any systemic lacunae.

Of course, with the SEC recently characterizing Binance USD (BUSD), a stablecoin that is issued by Paxos under a license arrangement with Binance, as an unregistered security, the regulatory glare on the stablecoin universe remains as bright as ever. Against this backdrop, it makes sense for Tether to try to combat negative perceptions in a more proactive manner so as to stave off a much more damaging regulatory action.

As for FTX, there exists a persistent impression that the legacy media has been much more sympathetic vis-à-vis FTX, seeking to paint its former CEO, Sam Bankman-Fried (SBF), in a relatively positive light. While we can’t conclusively determine whether this is indeed an accurate take, Tether seems to have made up its mind on Wall Street Journal’s perceived bias.

Do you think Tether is correct in calling out the supposed bias of the legacy media in relation to FTX? Let us know your thoughts in the comments section below.