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They did internal audits but not external ones, which of course it's what everyone assumes

ineedasername 4y ago
They claim they did, but the problem is trust. If they were dishonest about their collateralization there's no reason the believe they'd be honest about the audit results. And the firm they hired is itself under investigation. They'd have to be much more open to convince me they're as well backed as they claim.
ceejayoz 4y ago
Why did they feel the need to post misleading third-party documents they claimed were audits, then? Why did they admit to dissolving their relationship with their auditor without completing one? https://www.coindesk.com/markets/2018/01/27/tether-confirms-its-relationship-with-auditor-has-dissolved/ https://www.coindesk.com/markets/2018/01/27/tether-confirms-... > We confirm that the relationship with Friedman is dissolved. Given the excruciatingly detailed procedures Friedman was undertaking for the relatively simple balance sheet of Tether, it became clear that an audit would be unattainable in a reasonable time frame. https://www.cftc.gov/PressRoom/PressReleases/8450-21 https://www.cftc.gov/PressRoom/PressReleases/8450-21 > The Tether order finds that since its launch in 2014, Tether has represented that the tether token is a stablecoin with its value pegged to fiat currency and 100% backed by corresponding fiat assets, including U.S. dollars and euros. However, the Tether order finds that from at least June 1, 2016 to February 25, 2019, Tether misrepresented to customers and the market that Tether maintained sufficient U.S. dollar reserves to back every USDT in circulation with the “equivalent amount of corresponding fiat currency” held by Tether and “safely deposited” in Tether’s bank accounts. In fact Tether reserves were not “fully-backed” the majority of the time. The order further finds that Tether failed to disclose that it included unsecured receivables and non-fiat assets in its reserves, and that Tether falsely represented that it would undergo routine, professional audits to demonstrate that it maintained “100% reserves at all times” even though Tether reserves were not audited.

They claim they did, but the problem is trust. If they were dishonest about their collateralization there's no reason the believe they'd be honest about the audit results. And the firm they hired is itself under investigation. They'd have to be much more open to convince me they're as well backed as they claim.

ceejayoz 4y ago

Why did they feel the need to post misleading third-party documents they claimed were audits, then? Why did they admit to dissolving their relationship with their auditor without completing one? https://www.coindesk.com/markets/2018/01/27/tether-confirms-its-relationship-with-auditor-has-dissolved/ https://www.coindesk.com/markets/2018/01/27/tether-confirms-... > We confirm that the relationship with Friedman is dissolved. Given the excruciatingly detailed procedures Friedman was undertaking for the relatively simple balance sheet of Tether, it became clear that an audit would be unattainable in a reasonable time frame. https://www.cftc.gov/PressRoom/PressReleases/8450-21 https://www.cftc.gov/PressRoom/PressReleases/8450-21 > The Tether order finds that since its launch in 2014, Tether has represented that the tether token is a stablecoin with its value pegged to fiat currency and 100% backed by corresponding fiat assets, including U.S. dollars and euros. However, the Tether order finds that from at least June 1, 2016 to February 25, 2019, Tether misrepresented to customers and the market that Tether maintained sufficient U.S. dollar reserves to back every USDT in circulation with the “equivalent amount of corresponding fiat currency” held by Tether and “safely deposited” in Tether’s bank accounts. In fact Tether reserves were not “fully-backed” the majority of the time. The order further finds that Tether failed to disclose that it included unsecured receivables and non-fiat assets in its reserves, and that Tether falsely represented that it would undergo routine, professional audits to demonstrate that it maintained “100% reserves at all times” even though Tether reserves were not audited.