Tether To Undergo An Audit Soon?
- USDT stablecoin issuer, Tether Limited Inc., has responded to the Wall Street Journal’s concerns published last week and stated that it intends to perform an audit soon.
- Tether has not delivered the audit to date, but according to the latest response by the company’s CTO Paolo Ardoino, it plans to do so in the near future.
Tether Limited Inc., USDT stablecoin issuer owned by Hong Kong-based company iFinex Inc., has responded to the Wall Street Journal’s concerns published last week and stated that it intends to perform an audit soon.
On August 27, the WSJ published an article that questioned the promises made by the company since 2017 for an audit. Notably, Tether has not delivered the audit to date, but according to the latest response by the company’s CTO Paolo Ardoino, it plans to do so.
“Everyone knows that we have not had an audit, and they know we are working towards one,”The response stated.
The company has not provided a date by which the firm could perform an audit and stated that “things are going slower than… we would like.”
The firm, which also released a stablecoin pegged to the Sterling, claims that rival stablecoins, in contrast, have made misleading audit claims. The claim aligns with the WSJ’s argument, which states that a complete audit would include examining transactions made before a given date, whereas Tether and other major stablecoins just post attestations.
It is interesting to note that instead of conducting a thorough audit, Tether has released financial snapshots that have been approved by the renowned independent audit firm BDO Italia, which according to Tether, has unrestricted access to the company’s information. Although it has made it obvious that these snapshots are not proper audits, it argues that this technique is the most honest and transparent on the market.
“BDO will continue to have unrestricted access to any relevant information to perform their work and Tether will continue to share its attestations, despite continuous attempts by the media to disparage its reputation and that of top-ranking firms like BDO that are working with digital asset companies,”The statement reads.
The stablecoin issuer is constantly criticized even though it is the biggest stablecoin by market capitalization. The WSJ’s investigation made other claims and inferences that the stablecoin issuer contested.
The WSJ seeks to single out Tether and damage its reputation, according to Tether, which argued that a margin of variation in reserves is typical throughout the stablecoin market. Tether declared that it has recently easily redeemed $16 billion of its USDT stablecoin, proving its resilience. It contends that it is impossible to short-sell USDT and claims that the notion stems from a false narrative about hedge funds that have unsuccessfully attempted to short the stablecoin.
Additionally, the business asserts that it is profitable in a statement that reads, “To assume that our business is unprofitable is false.”