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Not an audit, an attestation. They check assets at a moment and time.

by graeme 5y ago

ceejayoz 5y ago
Yup. Tether pulled the same trick repeatedly, and it was fraudulent. https://ag.ny.gov/press-release/2021/attorney-general-james-ends-virtual-currency-trading-platform-bitfinexs-illegal https://ag.ny.gov/press-release/2021/attorney-general-james-... > Tether published a self-proclaimed ‘verification’ of its cash reserves, in 2017, that it characterized as “a good faith effort on our behalf to provide an interim analysis of our cash position.” In reality, however, the cash ostensibly backing tethers had only been placed in Tether’s account as of the very morning of the company’s ‘verification.’ > On November 1, 2018, Tether publicized another self-proclaimed ‘verification’ of its cash reserve; this time at Deltec Bank & Trust Ltd. of the Bahamas. The announcement linked to a letter dated November 1, 2018, which stated that tethers were fully backed by cash, at one dollar for every one tether. However, the very next day, on November 2, 2018, Tether began to transfer funds out of its account, ultimately moving hundreds of millions of dollars from Tether’s bank accounts to Bitfinex’s accounts. And so, as of November 2, 2018 — one day after their latest ‘verification’ — tethers were again no longer backed one-to-one by U.S. dollars in a Tether bank account. An actual audit looks at more than a bank balance snapshot.
- FireBeyond 5y ago
  No, they had an audit, "really truly". And a full audit. But they could not release it. Because it was in Mandarin! You can't make this shit up if you tried. The interview with a Deltec VP after all that also revealed that Deltec is heavily intertwined. He said "we know they're fully backed because we can see the issuance of Tethers in the internal systems and the corresponding deposits". Like, interesting, your bank has insights into your internal systems? Curious.

Not an audit, an attestation. They check assets at a moment and time.

by graeme 5y ago

Not an audit, an attestation. They check assets at a moment and time.

Yup. Tether pulled the same trick repeatedly, and it was fraudulent. https://ag.ny.gov/press-release/2021/attorney-general-james-ends-virtual-currency-trading-platform-bitfinexs-illegal https://ag.ny.gov/press-release/2021/attorney-general-james-... > Tether published a self-proclaimed ‘verification’ of its cash reserves, in 2017, that it characterized as “a good faith effort on our behalf to provide an interim analysis of our cash position.” In reality, however, the cash ostensibly backing tethers had only been placed in Tether’s account as of the very morning of the company’s ‘verification.’ > On November 1, 2018, Tether publicized another self-proclaimed ‘verification’ of its cash reserve; this time at Deltec Bank & Trust Ltd. of the Bahamas. The announcement linked to a letter dated November 1, 2018, which stated that tethers were fully backed by cash, at one dollar for every one tether. However, the very next day, on November 2, 2018, Tether began to transfer funds out of its account, ultimately moving hundreds of millions of dollars from Tether’s bank accounts to Bitfinex’s accounts. And so, as of November 2, 2018 — one day after their latest ‘verification’ — tethers were again no longer backed one-to-one by U.S. dollars in a Tether bank account. An actual audit looks at more than a bank balance snapshot.

FireBeyond 5y ago
No, they had an audit, "really truly". And a full audit. But they could not release it. Because it was in Mandarin! You can't make this shit up if you tried. The interview with a Deltec VP after all that also revealed that Deltec is heavily intertwined. He said "we know they're fully backed because we can see the issuance of Tethers in the internal systems and the corresponding deposits". Like, interesting, your bank has insights into your internal systems? Curious.