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Tether vows audit after WSJ criticism

Tether vows audit after WSJ criticism

Tether Will Conduct an Audit

Tether claims it has not yet undergone an audit but is planning to do so.
As a response to a Wall Street Journal report published on August 27 pointing out that Tether has been promising an audit since 2017 but has yet to deliver, the company issued the statement.

The company acknowledged on August 30 that “everyone understands that we have not had an audit and they know that we are working towards one.”

However, Tether CTO Paolo Ardoino did not specify a time frame in which the company may conduct an audit. A more accurate translation of his words would be “things are proceeding slower than… we would like.”

Tether claims that BDO Italia has “unrestricted access” to the company’s data, thus the firm has signed off on interim financial reports instead of conducting a thorough audit. However, it has made it plain that these samples are not actual audits, despite its insistence that it is the “most honest and transparent in the industry.”

However, the company claims that rival stablecoins have made misleading audit claims. The Wall Street Journal backs up this claim, noting that Tether and other top stablecoins only post attestations, while a real audit would include checking transactions from before a certain date.

Tether agrees with the Wall Street Journal that there is currently no accepted method of auditing or accounting for digital assets. It claims it is “pleased” by these new developments.

Further WSJ Statements Challenged

Furthermore, Tether disputed the Wall Street Journal’s statements and inferences. A statement from the corporation states, “to suggest that our business is unprofitable is untrue.”

Specifically, Tether answered the allegations that its assets exceed its liabilities by $191 million and that a drop of 0.3% in assets would “make [it] technically insolvent.”

Tether claims the WSJ is trying to “single out Tether and tarnish its reputation,” despite the fact that it acknowledges that the stablecoin industry as a whole allows for some margin of variance in reserves. Tether confirmed it had successfully redeemed $16 billion worth of its USDT stablecoin in recent months, showcasing the strength of its product.

Tether also noted that the three months’ worth of treasury bills (T-bills) it holds as part of its reserves is a secure asset.

Last but not least, the company is adamant that short selling USDT is impossible, claiming that the widespread belief that this is possible comes from untrue rumors about hedge funds that have unsuccessfully attempted to short the stablecoin.

Tether did not address the WSJ’s other assertions, including that it is the only major stablecoin to hold digital tokens as reserves. It also failed to address the fact that USDT dropped below $0.95 per token during Terra’s collapse in May.

Tether is widely criticized despite being the most valuable stablecoin. It’s possible that naysayers will be proven right by today’s reminder that a full audit is still unavailable.

Orizu Augustine
Orizu Augustine is an experienced crypto writer working for Alltechcraft. Having passion for writing, he covers news articles from blockchain to cryptocurrency and iPhone and Samsung related articles.