Bitfinex Shareholder Claims Tether Backed with $3B

According to investor and shareholder Zhao Dong, he saw the balance of the Tether and Bitfinex bank account
06 February 2018   128

Zhao Dong, a well-known Chinese investor and shareholder of Bitfinex, claims to have seen with his own eyes the balance of the Tether and Bitfinex bank account during a recent meeting with Bitfinex Financial Director Giancarlo Devasini. This is reported by Bitcoin.com.

Lao Mao (CEO, Big One) (and I) just had a look at the USD account of Tether and Bitfinex in Giancarlo’s (Boss of BFX, CFO) room, in which Tether’s account holds 1.8x billion USD and Bitfinex holds 1.1x billion USD. The total number of the two accounts is around 3 billion USD, which is beyond the current circulated supply of USDT. This debunks all rumors around USDT.
 

Zhao Dong

Shareholder, Bitfinex

The chief executive officer of Big.one published a blog post following the trip, in which an interview between Mr. Devasini and one of Lao Mao’s associates is made public. 

The Bitfinex team has aroud 50 people. The Tether team does not work for money. As early as bitcoin investors, the team has a sense of responsibility and mission. Tether can no longer be limited to the US dollar. Company can use the euro, the Japanese yen and other fiat currencies.
 

Giancarlo Devasini
CFO, Bitfinex

He also noted that the company does not intend to disclose all the details of its relations with banks, which is supposedly a reciprocal measure of pressure from the US banking industry, which in every possible way interferes with Tether's activities.

From the interview, Mao concluded that "we can trust Tether and USDT."

The mood of Mao relative to the Tether tokens has recently changed markedly. In November of last year, he urged the exchange to not integrate couples with USDT.

In addition, the authors of the report criticized Tether and Birfinex for lack of transparency in their relations with banks, and specifically Tether - for the fact that the issuer presented audits of the auditor Friedman LLP as full-fledged audits, although they were not.

Tether Terminated Cooperation With Friedman LLP

Friedman LLP was the auditor company of Tether's funds
29 January 2018   122

USDT issuer, Tether announced the termination of partnership with the audit company Friedman LLP. This is reported by CoinDesk.

The Friedman LLP company audited Tether tokens, which are represented on the large Bitfinex exchange. In the opinion of many critics, Tether issues not backed tokens in large amount. Bitfinex'd blogger is convinced that the excessive emission of such tokens caused a recent sharp surge in the price of bitcoin and other crypto-currencies, which was later replaced by a sharp dump in early 2018.

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. As Tether is the first company in the space to undergo this process and pursue this level of transparency, there is no precedent set to guide the process nor any benchmark against which to measure its success.
 

Tether Statement

The last time the audit of Tether accounts was conducted by Friedman in September last year. As indicated in the preliminary report, the reserve of the tokens USDT was $ 442.9 million in the denominated currency.