$400k in Debt at Risk as Tether's Alloy Shutdown Deadline Looms

Tether's Alloy platform is shutting down on September 17, leaving customers who still hold USDT at risk of losing access to their collateral. The shutdown affects five open positions that currently carry $399,088.74 in debt and $194.41497 worth of XAUT collateral.

The exposure is relatively small compared to the total supply of aUSDT, which stands at 50 million tokens. However, this amount represents less than 0.8% of the maximum supply, according to on-chain data.

Tether has not published any alternative recovery route for customers after the shutdown deadline. The platform's official vault data shows that the remaining exposure has declined by about 56% since June 30, when it stood at $907,994.82 in debt and $470.42 in collateral.