Tether had released an unaudited report that they hold nearly 50B$ worth of commercial papers. Now there are reports that they might have a sizeable exposure to commercial papers issued by evergrande, which is the largest property developer in China.
Evergrande is in a deep debt crisis and owes close to 350B$ to banks, contractors, suppliers, etc. It’s share price has plunged close to 80% since June. Evergrande’s rating haa been downgraded to CC- which is like below junk bonds. So as you can imagine this poses a significant risk to Tether and crypto market. Infact a total collapse of evagrande could bring a Lehman brother like situation in Asia and could spread like Covid to other markets across the world.