Alameda and Cumberland Dominate USDT Market, With 70% Of All Coins Ever Issued

Alameda Research and Cumberland, two prominent market makers in the crypto industry, have acquired a significant portion of Tether (USDT), according to a recent report by Protos. Since its launch in 2014, these companies have bought back an impressive 70% of all USDT ever issued by Tether, the entity behind this stable digital token.

Alameda Research Leads the Pack With 36.7 Billion USDT

According to the report, Alameda Research, a cryptocurrency trading firm established by billionaire Sam Bankman-Fried and owner of FTX exchange, has emerged as the largest buyer of USDT. Over the past seven years, they have received a staggering 36.7 billion USDT from Tether’s treasuries.

Interestingly, a significant portion of this amount, around 86% or 31.7 billion USDT, was acquired in the last year alone – indicating a substantial increase in demand for this stablecoin. Furthermore, the report shows the journey of these USDT funds from Alameda Research to various cryptocurrency exchanges.

Notably, FTX stands out as the primary recipient with over 30.1 billion USDT received from Alameda Research. Other notable exchanges that have also received USDT from this firm include Binance, Huobi, and OKEx.

Cumberland Follows With 23.7 Billion USDT

According to the report, Cumberland, the crypto trading arm of DRW Holdings, a global market maker, is the second-largest buyer of USDT. Since 2014, Cumberland has acquired 23.7 billion USDT from Tether’s treasuries. A significant portion of this acquisition, specifically 74% or 17.6 billion USDT, took place in the last year alone.

The report highlights that Cumberland has established a close partnership with Binance, the world’s largest crypto exchange by volume, as its primary source for liquidity and market making. Over time, Binance received 79%, equivalent to 18.7 billion USDT from Cumberland. Other exchanges such as Poloniex, Bitfinex, Huobi, and OKEx have also received USDT from Cumberland.

Tether Faces Regulatory Scrutiny and Media Criticism

Tether with a market capitalization exceeding $74.44 billion, is currently under scrutiny from regulators and media outlets due to concerns regarding its transparency and compliance. In recent months, Tether faced a penalty of $41 million by the US Commodity Futures Trading Commission (CFTC) for violating the Commodity Exchange Act by making false statements about its reserves supporting USDT.

Additionally, Bloomberg accused Tether of running a Ponzi scheme, alleging that it utilized its reserves to finance billions of dollars in short-term loans to Chinese companies.