Tether, the issuer of the USDT stablecoin, is in talks with a major auditing firm to undertake a full audit of its asset reserves following industry criticism for lack of transparency.
Pursuit of Audit
Tether CEO Paolo Ardoino has expressed hope that the audit process will be facilitated under pro-crypto US President Donald Trump. Ardoino stated that the president has highlighted the importance of this issue, expressing readiness to collaborate with major auditing firms.
Reasons for Concern
In September 2024, Cyber Capital founder Justin Bons was among those voicing concerns about Tether's transparency. He highlighted that without an audit, there's no way to trust if Tether holds $118 billion in collateral. In 2021, the CFTC fined Tether $41 million for false statements about USDT backing.
Tether's Response
In reaction, Tether has brought in Simon McWilliams as CFO to spearhead audit preparations. The company also voiced disappointment with recent European regulations forcing exchanges to delist USDT.
Tether remains committed to enhancing transparency and is set to carry out a full audit of its reserves, emphasizing the importance of maintaining trust among investors and regulators.
