- Tether’s questionable loans and reserve backing
- Where’s the audit, Tether?
- Tether’s ties to sanctioned entities
Consumers' Research has once again pointed out Tether, accusing the company of lack of transparency and insufficient reserve backing for USDT.
Tether’s questionable loans and reserve backing
Tether has issued massive loans in USDT with the promise of repayment at par value with the dollar. However, what happens if the borrowers don't repay those loans? Tether claims that the reserves are intact, but the public hasn't seen any concrete evidence. In December 2023, S&P rated USDT's risk level at 4 out of 5. Additionally, the company is caught in a class-action lawsuit for inadequate reserve backing.
Where’s the audit, Tether?
Since 2017, Tether has promised an independent audit, but it still hasn't happened. In August 2022, the company’s CEO assured that the audit was only months away, but it never materialized. Attempts to collaborate with major firms failed, and the public is still waiting for reliable data on reserve transparency.
Tether’s ties to sanctioned entities
Authorities in the US and UK are investigating $20 billion in transactions processed through the Russian crypto exchange Garantex, sanctioned in 2022. Tether also continues to work with other sanctioned exchanges and remains active on the TRON network despite fraud charges against its founder.
Until Tether provides transparent data and undergoes an independent audit, the public will continue to view its claims about USDT backing with skepticism.
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