Tether, the issuer of the world’s largest stablecoin USDT, is under scrutiny after companies tied to its own founder, Giancarlo Devasini, purchased a crypto mining firm from an AI data company it controls. The deal highlights growing concerns over transparency and governance within Tether’s expanding ecosystem.
Tether holds a majority stake in Northern Data, a German AI data center operator that, in November, sold its Bitcoin mining arm, Peak Mining, for up to $200 million. The buyers—Highland Group Mining Inc, Appalachian Energy LLC, and 2750418 Alberta ULC—were later revealed in regulatory filings as companies associated with Devasini himself.
Records from the British Virgin Islands show Devasini serves as a director at Highland Group, raising questions about internal business dealings and possible conflicts of interest within Tether’s leadership structure. While no legal violations have been publicly identified, critics argue such transactions demand stronger disclosure standards and independent oversight, especially given Tether’s critical position in global crypto liquidity.
Tether’s USDT stablecoin currently has a circulating supply of around $186 billion, making it a cornerstone of crypto trading and decentralized finance. Over recent years, the company has aggressively diversified, backing ventures in AI, Bitcoin mining, renewable energy, and peer-to-peer applications.
Despite its market dominance, Tether has faced persistent skepticism from regulators, financial watchdogs, and analysts due to its opaque ownership, offshore structure, and historically limited transparency about reserves and executive governance.
This latest development adds to the list of related-party transactions raising eyebrows in the crypto community, particularly as regulators worldwide begin to ramp up scrutiny of stablecoin operators and their broader corporate activities.
