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This is so interesting to me. A curiosity. Usually, when you want your financials vetted you go to an accounting firm. I find it curious that they chose a law

This is so interesting to me. A curiosity. Usually, when you want your financials vetted you go to an accounting firm. I find it curious that they chose a law firm — with some PR-value name like Louis Freeh attached to it. Celebrity endorsement? Why not get a proper audit by Ernst & Young, Deloitte or PwC? We don’t see mutual fund financials vetted by law firms. Tether is a type of money-market fund. It doesn’t add up. People behaving strangely . . . .

zik 8y ago
It is weird. And really this report comes down to them getting a couple of signed letters from third parties. Why do it this way rather than a normal audit?
- sanxiyn 8y ago
  A positive interpretation is that Tether is solvent and wants to prove solvency but does not want to deal with non-solvency related audit issues. That's assuming some goodwill... If you don't assume goodwill, what you should conclude from this is anyone's guess.
  - ct520 8y ago
    It’s a goodwill gesture without letting too much known. (Worked for companies that did similar when dealing with big banks and were privately held)
  - TAForObvReasons 8y ago
    Designed to distract and deflect. Goodwill on financial solvency matters was completely destroyed after they suspiciously "dissolved" their relationship with audit firm: https://www.coindesk.com/tether-confirms-relationship-auditor-dissolved/ https://www.coindesk.com/tether-confirms-relationship-audito... This is somewhat reminiscent of Michael Cohen's "proof" that "[he has] never been to Prague in [his] life." (in his case, a picture of a cover of a US passport). It is not actually proof of anything useful, but does manage to help control the narrative in a specific way https://twitter.com/MichaelCohen212/status/818991277685567489 https://twitter.com/MichaelCohen212/status/81899127768556748...
    - sanxiyn 8y ago
      Friedman LLP fiasco is consistent with my positive interpretation.
  - duskwuff 8y ago
    When there's $2B+ at stake, people expect something a little more definitive than "goodwill".
social_quotient 8y ago
I think accounting firms generally have requirements to disclose or rather no covenants of privilege... whereas law firms don’t. Attorney client privilege.
deleted 8y ago
[deleted]
PhantomGremlin 8y ago
Usually, when you want your financials vetted you go to an accounting firm. I find it curious that they chose a law firm This was already mentioned in replies a few levels down. But I think it's important enough to repeat: Earlier this year an accounting firm walked away from them: https://www.coindesk.com/tether-confirms-relationship-audito.. https://www.coindesk.com/tether-confirms-relationship-audito.... That comes under the category of "things that make you say hmmm ..."
jameshilliard 8y ago
> Why not get a proper audit by Ernst & Young, Deloitte or PwC? I think the reason is quite obvious, it's simply that traditional auditing firms don't have procedures in place for actually auditing crypto. It should be obvious to anyone familiar with the situation that Tether is fully backed and that the FUD is manufactured. https://medium.com/@Austerity_Sucks/bitfinexed-is-a-sensationalist-a-liar-a-fraud-and-an-opportunist-2481e4912e31 https://medium.com/@Austerity_Sucks/bitfinexed-is-a-sensatio...

zik 8y ago

It is weird. And really this report comes down to them getting a couple of signed letters from third parties. Why do it this way rather than a normal audit?

sanxiyn 8y ago
A positive interpretation is that Tether is solvent and wants to prove solvency but does not want to deal with non-solvency related audit issues. That's assuming some goodwill... If you don't assume goodwill, what you should conclude from this is anyone's guess.
- ct520 8y ago
  It’s a goodwill gesture without letting too much known. (Worked for companies that did similar when dealing with big banks and were privately held)
- TAForObvReasons 8y ago
  Designed to distract and deflect. Goodwill on financial solvency matters was completely destroyed after they suspiciously "dissolved" their relationship with audit firm: https://www.coindesk.com/tether-confirms-relationship-auditor-dissolved/ https://www.coindesk.com/tether-confirms-relationship-audito... This is somewhat reminiscent of Michael Cohen's "proof" that "[he has] never been to Prague in [his] life." (in his case, a picture of a cover of a US passport). It is not actually proof of anything useful, but does manage to help control the narrative in a specific way https://twitter.com/MichaelCohen212/status/818991277685567489 https://twitter.com/MichaelCohen212/status/81899127768556748...
  - sanxiyn 8y ago
    Friedman LLP fiasco is consistent with my positive interpretation.
- duskwuff 8y ago
  When there's $2B+ at stake, people expect something a little more definitive than "goodwill".

social_quotient 8y ago

I think accounting firms generally have requirements to disclose or rather no covenants of privilege... whereas law firms don’t. Attorney client privilege.

deleted 8y ago

[deleted]

PhantomGremlin 8y ago

Usually, when you want your financials vetted you go to an accounting firm. I find it curious that they chose a law firm This was already mentioned in replies a few levels down. But I think it's important enough to repeat: Earlier this year an accounting firm walked away from them: https://www.coindesk.com/tether-confirms-relationship-audito.. https://www.coindesk.com/tether-confirms-relationship-audito.... That comes under the category of "things that make you say hmmm ..."

jameshilliard 8y ago

> Why not get a proper audit by Ernst & Young, Deloitte or PwC? I think the reason is quite obvious, it's simply that traditional auditing firms don't have procedures in place for actually auditing crypto. It should be obvious to anyone familiar with the situation that Tether is fully backed and that the FUD is manufactured. https://medium.com/@Austerity_Sucks/bitfinexed-is-a-sensationalist-a-liar-a-fraud-and-an-opportunist-2481e4912e31 https://medium.com/@Austerity_Sucks/bitfinexed-is-a-sensatio...