Coinbase Director Conor Grogan Estimates Alameda Research Minted Some $40B Of USDT

Zinger Key Points
  • Alameda minted $39.55B USDT, nearly 47% of Tether's current circulating supply.
  • USDT minted surpassed Alameda's peak crypto AUM, as per data submitted to Forbes by SBF.

Coinbase COIN director Conor Grogan shed light on Alameda's significant involvement in Tether USDT/USD minting, suggesting potential arbitrage trading motives.

Onchain data indicates that Alameda was responsible for minting a staggering $39.55 billion of USDT, which accounts for nearly 47% of Tether's current circulating supply, Grogan said.

This figure surpasses a previous estimate, which had pegged the number at approximately $36.7 billion. Grogan's updated figures incorporate additional wallets that were previously overlooked.

In a timely connection to these findings, Benzinga's Future of Digital Assets conference, scheduled for Nov. 14, is anticipated to address such pivotal developments in the digital currency landscape. With industry experts and stakeholders converging, discussions around the implications of such large-scale minting activities and their impact on the crypto market are expected to take center stage.

Grogan pointed out that the amount of USDT minted was notably higher than Alameda's Assets Under Management (AUM) during the peak of the cryptocurrency market.

Also Read: Hacker Steals Then Returns Funds For Reward To Huobi's HTX - 'You Made The Right Choice'

This data aligns with figures submitted by FTX founder Sam Bankman-Fried to Forbes for their annual World’s Billionaires publication.

However, tracking redemptions poses challenges.

Tether's operations, particularly the coordination of burns, appear to be conducted off-chain. Instead of having specific deposit addresses, transactions are directly sent to the treasury.

If all USDT redemptions from FTX were solely from Alameda Research, then they would have redeemed an estimated 3.9 billion of USDT. The majority of this redemption occurred over two days in May, coinciding with the Luna LUNA/USD implosion.

Read Next: Bitcoin Inscriptions Surpass NFT Minting On Ethereum, Solana, Polygon Despite Bear Market

Meet and engage with transformative Digital Asset and Crypto business leaders and investors at Benzinga's exclusive event  Future of Digital Assets. Tickets are flying get yours!

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