"Tether has introduced a lawsuit in Sao Paulo to recover $300 million borrowed to Titan Holding, a company part of the Master conglomerate owned by Daniel Vorcaro. Vorcaro, who was apprehended on Thursday, was also the owner of Banco Master, liquidated by the Central Bank of Brazil in November after a $2.2 billion hole in its reserves was detected. According to local media, the loan was issued by Tether Investments one year ago, before the Master conglomerate scandal exploded, affecting over 1 million customers."
"The loan was made by Tether Investments, Tether's VC arm. The loan was supposed to be repaid by March 28, 12 months after its issuance. Nonetheless, until the time of writing, Tether has not received any repayment from Titan Holdings. In the lawsuit, Tether requests the freezing of financial assets deposited in bank accounts, financial applications, investments, and any other financial assets held by the Defendants Titan, Master Holding, and Master Participacoes be ordered."
"Tether clarified that this loan was not part of the funds backing USDT's issuance, as it is part of its loan portfolio. Even so, Tether is now among a large number of creditors seeking restitution from the Master conglomerate, whose demise caused losses reaching into the tens of billions. Galaxy's Alex Thorn notes Tether is crypto's top CeFi lender, with secured loans reaching $15.8B."
Tether Investments provided a $300 million secured loan to Titan Holdings in March 2025, with repayment due by March 28, 12 months after issuance. Titan Holdings is part of the Master conglomerate owned by Daniel Vorcaro, whose arrest followed the collapse of Banco Master. The Central Bank of Brazil liquidated Banco Master in November after detecting a $2.2 billion shortfall in reserves. Tether filed a lawsuit in Sao Paulo seeking recovery of the $300 million and requesting the freezing of financial assets held by Titan, Master Holding, and Master Participacoes. Tether stated the loan was not connected to funds backing USDT, since it came from its loan portfolio. Tether joins many creditors seeking restitution as losses from the conglomerate reach tens of billions.
Read at news.bitcoin.com
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