Tether, a major stablecoin issuer, has denied claims made by the Wall Street Journal (WSJ) in an earlier article. The publication claimed that Tether’s transparency efforts were discredit and Tether’s financial viability was questioned.
USDT is not a stranger to controversy, particularly in relation to questions about its reserves. The company has so far reduced its exposure by 58% to commercial paper holdings.
Tether Planning will soon release an audit
Tether released a statement Tuesday, August 30, 2022. It stated that the WSJ had made “unsubstantiated conclusion” and that the stablecoin issuer must clarify these.
The Wall Street Journal published on August 27 an article noting Tether has yet to perform an audit. This is expected to happen in 2017. The publication states that the stablecoin-issuer continues to publish an attestation, which shows a snapshot of its liabilities and reserves, as signed by its accounting firm.
Tether stated that it was working to provide an audit but insisted that all its transactions were transparent.
CryptoPotato reported previously that the stablecoin issuer has hired BDO Italia to replace MHA Cayman.
Tether also announced that publication of its attestation reports regarding USDT reserves will now occur monthly rather than quarterly.
The stablecoin issuer also clarified that BDO was a reputable, independent top 5 auditor firm and not a Tether accounting firm as stated in the WSJ report.
Tether also responded to WSJ, claiming that three months worth of Treasury Bills was a safe bet since it has been the most reliable asset for decades.
Stablecoin Giant at the Brink Of Insolvency
BDO’s August 25 attestation showed that Tether had assets worth $67.7 Million and liabilities of $67.5 Billion, which was a difference of only $191 million.
WSJ reported that a 0.3% decrease in assets could “render Tether technically solvent” – a development that skeptics fear could lower investor confidence and encourage an increase in redemptions.
Tether, however, responded to the claim, stating that such margins could also be found in other stablecoins on the market. Tether also noted that the publication had singled out one stablecoin issuer in order to damage its reputation.
According to Tether, $16 billion USDT was redeemed with ease in the last months. Paolo Ardoino (CTO of Tether) stated that Tether expects significant growth in its capital cushion over the next few month.
Tether claimed that it was also profitable and stated:
It is false to assume that our business does not make a profit. Our Consolidated Reserves Report shows that Tether has not disclosed equity, despite being financially sound for many years. Important stakeholders deemed this report appropriate and the NYAG accepted it. Tether may have been confused by the WSJ with its competitors.
CryptoPotato’s first post, Tether Responds To a Supposed Attack in WSJ Report, appeared first on CryptoPotato.
Marla Brooks – Financial Analysis
My name is Marla Brooks, and I am the mainstream behind the”observednews.com” for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.