In a recent communication, Tether made a surprising revelation, asserting that Cake DeFi’s operational control rested in the hands of “another corporate entity, located in the vibrant city-state of Singapore.” This revelation comes with a consequential twist: Cake DeFi would henceforth be denied the privilege to exchange USDT for their equivalent in US dollars.
Tether, the prominent issuer of stablecoins, has evidently undergone a transformation in its terms of service (ToS) framework applicable within Singapore. The CEO of the decentralized finance phenomenon, Cake DeFi, made this development public via an email dated September 25th. This communique highlights revisions to the ToS that explicitly prohibit specific customer segments from conducting USDT redemptions.
Julian Hosp, the co-founder and CEO of Cake DeFi, generously shared this groundbreaking email correspondence from Tether. It elucidates that, owing to the sweeping adjustments in its ToS, Tether is henceforth incapable of facilitating the conversion of USDT into United States dollars, specifically for entities based in Singapore.
Taking to X, the platform formerly known as Twitter, Hosp expressed his doubts regarding Cake’s ability to redeem USDT in exchange for U.S. dollars, alluding to the jurisdictional constraints imposed by Singapore.
A profound shift in Tether’s ToS involves stringent onboarding criteria and the exclusion of “corporate entities under the control of another entity, alongside directors and shareholders residing in Singapore” from their clientele list.
The concept of being “controlled by another entity” has sparked bewilderment within the cryptocurrency community, especially for Cake DeFi, as it has now been formally categorized as ineligible for both issuance and redemption on the Tether platform.
In the bustling world of X users, the noteworthy alterations to Tether’s ToS have arrived amidst a significant money laundering scandal that has engulfed Singapore’s crypto landscape. The magnitude of the assets seized in connection to this scandal has surged past the staggering sum of $2 billion.
Interestingly, some users have ventured to speculate that the modifications pertaining to USDT redemption could be uniquely tied to Cake DeFi. They propose that the DeFi protocol has been flagged for enhanced due diligence (EDD), raising the possibility of a partnership issue between these two prominent entities.
Notably, Cointelegraph attempted to solicit a response from Tether concerning the email shared by Cake’s CEO and the overall adjustments to their ToS. As of the time of publication, however, there has been no official response from Tether to this inquiry.
