- Tether Accused of Non-Transparency Again
- Incognito Dollar for Sanctioned Countries
- Claims Against Tether Are Gaining Momentum
Consumer advocacy group Consumers’ Research has released a report accusing Tether, the issuer of the USDT stablecoin, of being opaque and not conducting a full audit of its dollar reserves.
Tether Accused of Non-Transparency Again
Consumers’ Research analysts stated that the USDT issuer has yet to conduct an audit of its reserves, although it has promised to do so since 2017. The report includes a letter to the governors of all U.S. states, which reports on Tether’s opaque activities. The organization accuses Tether of repeatedly promising to audit its reserves thoroughly but never providing a full report from a respected auditing firm.
Incognito Dollar for Sanctioned Countries
Earlier, Wall Street Journal (WSJ) journalists stated that USDT has become an “incognito dollar” for countries such as Venezuela and Russia, ensuring the free transit of capital abroad. According to the article, the stablecoin threatens the financial system and national security of the United States since it remains unregulated. The WSJ claims that the asset’s trading volume for 2023 exceeded the same indicator for the Visa payment system. The WSJ also notes that stablecoin issuer Tether's profit for the same period amounted to $6.2 billion.
Claims Against Tether Are Gaining Momentum
In August, the bankrupt Celsius Network accused Tether of misappropriating assets and violating the terms of the agreement. Court documents indicate that in 2020, Celsius Network entered into an agreement with Tether. Under the agreement, the company received borrowed funds in USDT stablecoins, while sending Tether 39,542 bitcoins as collateral. Celsius Network representatives claim that Tether hastily liquidated a large number of bitcoins in 2022, violating the terms of the contract and leading to the company's bankruptcy.
Tether Limited Inc. has been facing fraud allegations almost since its founding. The USDT issuer’s history indeed has some dark pages. However, judging by their actions, the company’s representatives are ready to take responsibility for mistakes and fight for the project’s development. The claims of Consumers’ Research and The Wall Street Journal are not unfounded, but many of them could be resolved by an independent audit.
