Consumer organization Consumer's Research published a report warning about the lack of transparency in the reserves of stablecoin issuer Tether.
Consumer's Research Claims
Consumer's Research claimed that Tether has not yet provided a full audit of its dollar reserves, despite numerous promises. The report also raises suspicions about doing business with dubious partners and helping to bypass international sanctions using USDT.
Tether's Response
In January, Cantor Fitzgerald CEO Howard Lutnick reassured the public about Tether’s reserves. In July, Tether hired former Chainalysis Chief Economist Philip Gradwell to draft USDT usage reports. In August, Tether CEO Paolo Ardoini announced the recovery of $108.8 million in cooperation with law enforcement agencies.
Transparency Measures
In September, Tether announced the formation of the T3 Financial Crime Unit in collaboration with Tron to identify and freeze illicit USDT transactions on the Tron network, the largest blockchain network for USDT trading.
Thus, despite Consumer's Research concerns, Tether continues to take measures to improve transparency and cooperation with regulatory authorities.
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