Tether has stopped transferring USDT to fiat for the Cake DeFi project


Singapore-based DeFi protocol Cake announced that Tether is no longer converting its stablecoin into US dollars due to “changes in its rules.” This was announced by co-founder and CEO of the platform Julian Hosp.

The top manager provided a screenshot of a message from Tether. It said the new terms of service would include the removal of services to “corporations controlled by another entity with directors and shareholders incorporated in Singapore”.

Users noted that Tether’s actions were dictated by a recent scandal in the jurisdiction. Local police investigated and discovered more than $2 billion in digital asset laundering.

There were also more optimistic users who suggested that Cake’s problems were specific and did not affect other crypto startups associated with the city-state.

Let us recall that in September, the Singapore authorities froze $1.8 billion associated with cryptocurrency laundering. Local parliament raised more than 30 questions on the topic, from the rigor of verification processes to reporting of suspicious transactions and the impact on the country’s reputation.

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