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Tether Promises Audit Following Wall Street Journal Criticism

important point

  • Tether has responded to The Wall Street Journal’s claim that the company has not been audited.
  • The company publishes periodic certificates or snapshots of its stablecoin reserves in lieu of thorough audits.
  • Despite statements to the contrary, Tether claims that no other major stablecoin company has been audited.

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Tether is wall street journal Earlier this week.

Tether plans an audit

Tether says it has not been audited, but plans to do so.

Tether released its statement in response August 27 article from wall street journalnoted that the company has promised audits since 2017 but has not done so.

“Everyone knows we have not been audited and we are working towards an audit,” the company said. August 30.

In that article, Tether CTO Paolo Ardoino did not provide a deadline within which the company could conduct the audit. Rather, he said, “Things… are going slower than we’d like.”

Instead of a full audit, Tether released a financial snapshot approved by BDO Italia. Tether says it has “unlimited access” to company information. While it claims the practice is “the most honest and transparent on the market,” it makes clear that these snapshots are not proper audits.

In contrast, competing stablecoins falsely claim to have conducted audits, the company said. The claim is that WSJMoreTether and other major stablecoins issue mere certificates, but a thorough audit requires transactions to be tested by a specified date.

along wall street journalIn response to the allegations, Tether acknowledges the lack of auditing and accounting standards in the digital asset industry.it says “welcome”[s] these developments.

other contested claims

Tether disputed other claims and implications from wall street journalThe company claims to be profitable, writing, “It is a fallacy to assume that our business is not profitable.”

Tether responded to allegations that its assets outweighed its liabilities by $191 million, saying that a 0.3% decline in its assets would result in a [it] technically broken. “

Tether argued that reserve differential margins are common across the stablecoin industry, stating: wall street journal It intends to “pick Tether and tarnish its reputation.” Tether has shown its resilience by confirming that in recent months he was able to easily redeem his $16 billion USDT stablecoin.

Tether added that three-month Treasury bills (T-bills), which form part of its reserves, are safe haven assets.

Finally, the company claims that shorting USDT is impossible, stating that this idea stems from the false narratives around it. Hedge fund Attempted to short the stablecoin without success.

The stablecoin issuer did not refute other claims. wall street journalclaims to be the only major stablecoin that uses digital tokens in its reserves, etc. Dropped to $0.95 When Terra collapsed in May.

Despite being the largest stablecoin by market capitalization, Tether is frequently criticized. Today’s reminder that a full audit is not yet available will prove the skeptics right.

Disclosure: At the time of writing, the author of this work owned BTC, ETH, and other cryptocurrencies.

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