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> but despite allegedly having several tens of billions of dollars in reserve, they refuse to do an audit. They don't refuse this, instead they fail to find an

> but despite allegedly having several tens of billions of dollars in reserve, they refuse to do an audit. They don't refuse this, instead they fail to find an auditor that people actually trust that wants to work on a big crypto project. They are very open about this. The big problem about Tether is the amount of FUD and misinformation going around as common knowledge. > I think the currently most plausible answer for how Tether works is As someone who deals with Tether as well as all the big exchanges that run Tether markets, this is about as real as Alice in wonderland.

Closi 6y ago
> They don't refuse this, instead they fail to find an auditor that people actually trust that wants to work on a big crypto project. They are very open about this. Claiming you don’t trust any auditors so you can’t do an audit is certainly one way of refusing an audit.
arcticbull 6y ago
> They don't refuse this, instead they fail to find an auditor that people actually trust that wants to work on a big crypto project. They are very open about this. No no, let's not rewrite history. Tether hired Friedman LLP to audit them in ~2017/2018. Friedman literally walked out of the audit [1] because, and I assume this is true, it was just too squeaky clean to bother finishing. Friedman claims to be a specialist in this area [2], and I believe they're actually involved with GBTC [3]. In retrospect it makes sense Friedman ran about as fast as they could. The New York AG lawsuit indicates at the time, Tether knew they were only 74% backed by assets. Boy, that'll make it tough to pass an audit when your website says you're actually backed 1:1 with actual humanly usable physical dollars. Remember, Bitfinex banked with a money launderer, CryptoCapital, and had $850 million dollars seized by authorities, so they just reached into the Tether kitty to plug the hole. [4] At the time Bitfinex and Tether were of course denying they even had any relationship at all - let alone a "friends with mutually accessible bank accounts" relationship - but we found out thanks to the Paradise papers. [5] Tether is "very open" about absolutely nothing. Claiming otherwise is the biggest misleading statement in this entire thread, intentional or not. Let's stick to the facts, Mike. [1] https://www.coindesk.com/tether-confirms-relationship-auditor-dissolved https://www.coindesk.com/tether-confirms-relationship-audito... [2] https://www.friedmanllp.com/industries/digital-currency https://www.friedmanllp.com/industries/digital-currency [3] https://www.friedmanllp.com/insights/congratulations-to-grayscale-bitcoin-trust https://www.friedmanllp.com/insights/congratulations-to-gray... [4] https://www.bloomberg.com/news/articles/2019-04-30/tether-says-stablecoin-is-only-backed-74-by-cash-securities https://www.bloomberg.com/news/articles/2019-04-30/tether-sa... [5] https://www.icij.org/investigations/paradise-papers/paradise-papers-connection-sparks-massive-bitcoin-lawsuit/ https://www.icij.org/investigations/paradise-papers/paradise...
- Closi 6y ago
  > Tether hired Friedman LLP to audit them in ~2017/2018. Friedman literally walked out of the audit [1] because, and I assume this is true, it was just too squeaky clean to bother finishing. Reading the source you linked it looks like tether's main criticism of Friedman is that they were 'too detailed'. God forbid that an auditor actually wants to get into the detail rather than just taking Tether's word for everything.
ac29 6y ago
Circle/USDC has ~$7B of coins issued and makes available monthly attestations of assets (an attestation isn't an audit, but its better than nothing). Tether claiming that they cant get an audit because of the haters on twitter is laughable.
anonymoushn 6y ago
The claims I have seen from you and from e.g. Sam Trabucco amount to basically "Tether is legit because we create and redeem tethers regularly." This is not real evidence, in the same way that "Bernard L. Madoff Investment Securities LLC is legit because I deposit and withdraw funds regularly" is not real evidence.

Closi 6y ago

> They don't refuse this, instead they fail to find an auditor that people actually trust that wants to work on a big crypto project. They are very open about this. Claiming you don’t trust any auditors so you can’t do an audit is certainly one way of refusing an audit.

arcticbull 6y ago

> They don't refuse this, instead they fail to find an auditor that people actually trust that wants to work on a big crypto project. They are very open about this. No no, let's not rewrite history. Tether hired Friedman LLP to audit them in ~2017/2018. Friedman literally walked out of the audit [1] because, and I assume this is true, it was just too squeaky clean to bother finishing. Friedman claims to be a specialist in this area [2], and I believe they're actually involved with GBTC [3]. In retrospect it makes sense Friedman ran about as fast as they could. The New York AG lawsuit indicates at the time, Tether knew they were only 74% backed by assets. Boy, that'll make it tough to pass an audit when your website says you're actually backed 1:1 with actual humanly usable physical dollars. Remember, Bitfinex banked with a money launderer, CryptoCapital, and had $850 million dollars seized by authorities, so they just reached into the Tether kitty to plug the hole. [4] At the time Bitfinex and Tether were of course denying they even had any relationship at all - let alone a "friends with mutually accessible bank accounts" relationship - but we found out thanks to the Paradise papers. [5] Tether is "very open" about absolutely nothing. Claiming otherwise is the biggest misleading statement in this entire thread, intentional or not. Let's stick to the facts, Mike. [1] https://www.coindesk.com/tether-confirms-relationship-auditor-dissolved https://www.coindesk.com/tether-confirms-relationship-audito... [2] https://www.friedmanllp.com/industries/digital-currency https://www.friedmanllp.com/industries/digital-currency [3] https://www.friedmanllp.com/insights/congratulations-to-grayscale-bitcoin-trust https://www.friedmanllp.com/insights/congratulations-to-gray... [4] https://www.bloomberg.com/news/articles/2019-04-30/tether-says-stablecoin-is-only-backed-74-by-cash-securities https://www.bloomberg.com/news/articles/2019-04-30/tether-sa... [5] https://www.icij.org/investigations/paradise-papers/paradise-papers-connection-sparks-massive-bitcoin-lawsuit/ https://www.icij.org/investigations/paradise-papers/paradise...

Closi 6y ago
> Tether hired Friedman LLP to audit them in ~2017/2018. Friedman literally walked out of the audit [1] because, and I assume this is true, it was just too squeaky clean to bother finishing. Reading the source you linked it looks like tether's main criticism of Friedman is that they were 'too detailed'. God forbid that an auditor actually wants to get into the detail rather than just taking Tether's word for everything.

ac29 6y ago

Circle/USDC has ~$7B of coins issued and makes available monthly attestations of assets (an attestation isn't an audit, but its better than nothing). Tether claiming that they cant get an audit because of the haters on twitter is laughable.

anonymoushn 6y ago

The claims I have seen from you and from e.g. Sam Trabucco amount to basically "Tether is legit because we create and redeem tethers regularly." This is not real evidence, in the same way that "Bernard L. Madoff Investment Securities LLC is legit because I deposit and withdraw funds regularly" is not real evidence.