Crypto Candidate Ramaswamy Exits Presidential Race as Tether Responds to UN, TrueUSD Depegs
Summary:
Vivek Ramaswamy, a US presidential candidate with pro-crypto views, has exited the race while the stablecoin TrueUSD depegs from its $1 value. In response to a UN report alleging illicit activity involving its stablecoin Tether (USDT), major stablecoin firm Tether stresses the coin's traceability and its commitment to anti-financial crime collaborations. Meanwhile, on Binance, traders have sold more than $339.2 million worth of TrueUSD in the past 24 hours, sparking speculation about the stablecoin's stability.
Vivek Ramaswamy, a presidential hopeful in the United States, has withdrawn his candidacy from the election race. Concurrently, the dollar-tied stablecoin TrueUSD has depreciated from its peg of $1. In a separate development, legal representatives for ex-CEO of Celsius, Alex Mashinsky, have petitioned a federal court to dismiss allegations of commodities fraud and market manipulation. Unfazed by a United Nations (UN) report pointing to the supposed involvement of its Tether (USDT) stablecoin in illegitimate transactions, stablecoin titan Tether has issued a response.
On January 15, Tether refuted the findings of the UN's report, pointing out that the study failed to recognize the traceability of the USDT and overlooked its established history of cooperating with global law enforcement. The firm suggested that the UN also explore how centralized stablecoins can boost efforts to counteract financial crime. It reiterated its commitment to partnering on such initiatives. Tether further flagged that, within the preceding few months, it had immobilized more than $300 million in USDT linked to illicit actions, inclusive of $225 million in November 2023, during a United States probe into a human trafficking ring in Southeast Asia.
At a press event in Des Moines on January 16, Ramaswamy informed his supporters of his decision to quit the presidential race, saying, "I am going to suspend this presidential campaign effective immediately." He added that there was no chance for him to assume presidency unless unwanted events transpire in the nation.
Pro-Bitcoin Republican candidate Vivek Ramaswamy has withdrawn from the United States presidential election, bringing his nearly year-long campaign to a probable conclusion. Despite his virtually unknown status at the start of the campaign, Ramaswamy quickly built a loyal following in the crypto sphere for his candid views on Bitcoin and other digital assets.
TrueUSD (TUSD) stablecoin, associated with Justin Sun, began to depreciate below its $1 peg from 11:00 UTC on January 15, stooping to $0.984 at 23:15. According to CoinMarketCap data, TUSD is currently trading at $0.987, falling 1.1% short of its intended $1 peg. The depegging coincided with an unusually high volume of TUSD sales on Binance.
At the time of reporting, more than $339.2 million worth of TUSD was sold on Binance in the past 24 hours, against buy orders of merely $296.8 million, recording a net outflow of $42.3 million. Earlier, on January 10, news surfaced that TrueUSD faced challenges presenting real-time certifications of its reserves, raising suspicions of undercollateralized stablecoin. Users on Crypto X have further conjectured that the massive sale might have been triggered by the absence of TUSD from the asset list in Binance's Manta (MANTA) launch pool initiative.
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Published At
1/16/2024 2:37:19 PM
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