Tether Hasn't Issued Any USDT For 2 Months

USDT tokens printer stopped immediatelly after the mail from US CFTC
19 March 2018   545

On Tuesday, January 23, Tether Ltd suspended the issue of USDT tokens. It was on that day that the mail delivered a summons from the US CFTC to the company's representatives, TrustNodes reports.

It is worth noting that for eight months prior to this date, Tether launched more than 2 billion USTD on the market - almost every week the issue increased by 100 million units, and in a few days in January, 600 million were issued.

The reason why the company stopped issuing new tokens remains unknown - it may be due to unfavorable market conditions or the investigation of the CFTC.

Recall, on January 30, the news of the court summons received by Tether and Bitfinex, brought down the price of bitcoins below $ 10,000.

Third-Party Audit Finally conducted by Tether

All the allegations stating claiming that Tether has “unencumbered assets exceed the balance of fully-backed USD Tethers” are cleared by the report
21 June 2018   329

After recently conducting an audit, Tether declared, that a law firm had confirmed that, as of 1st June, the company has more than bountiful amount of USD for the circulating USDT tokens. Tether was supported by the services of Washington-based law company Freeh Sporkin & Sullivan LLP (FSS) to revise bank account documents and to randomly inspect circulating Tethers and corresponding USD reserves.

Tether on their Twitter
Tether on their Twitter

As for  the firm’s credit, it was founded by 3 former federal judges. Earlier this year Tether involved Freeh, Sporkin & Sullivan LLP to survey bank account documentation and to perform an inspection of the numbers of Tethers in circulation & the corresponding currency reserves.

The law company also declared Tether’s compliance to AML standards, paperwork towards to personnel and corporate structure, and historical records about the amount of issued and outstanding Tethers, along with a variety of other documents. Tether’s problem began as the company parted its ways with its previous auditing partner Friedman LLP in late January. Even after facing a massive backlash the firm did not hire any third-party to go through its books. Because of the firm’s ties with the crypto exchange Bitfinex, it faced many allegations for the Bitcoin price manipulation. 

On June 13th, two researchers at the University of Texas at Austin issued a report called “Is Bitcoin Really Un-Tethered?” in that they stated to have found fresh evidence of Tether’s market manipulation tactics of Bitcoin and other major altcoins by flooding the market with USDT. Tether in their recent transparency update, admitted the scrutiny and affirmed that “much of the speculation and negative reporting” was due to “misunderstandings” of the firm’s business model.