Tether Terminated Cooperation With Friedman LLP

Friedman LLP was the auditor company of Tether's funds
29 January 2018   563

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.

USDT Are Backed by USD, Tether Says

Chief Compliance Officer of Tether Ltd. also said the company's assets always exceeded financial liabilities
16 October 2018   140

Chief Compliance Officer of Tether Ltd. Leonardo Real stated that all USDT tokens are secured by fiat reserves, and the company's assets always exceeded financial liabilities. It is reported by CoinDesk, citing representatives of the issuer.

Tether is the leading provider of tokenized fiat currencies and is listed on many exchanges worldwide. We would like to reiterate that although markets have shown temporary fluctuations in price, all USDT in circulation are sufficiently backed by U.S. dollars (USD) and that assets have always exceeded liabilities. In June 2018, a report from Freeh Sporkin & Sullivan, LLP (FSS), based on a random date balance inspection and a full review of relevant documentation of bank accounts, confirmed that all Tethers in circulation as of that date were indeed fully backed by USD reserves.
 

Leonardo Real

Chief Compliance Officer, Tether Ltd

Reel also stressed that the report of the law firm Freeh Sporkin & Sullivan, LLP (FSS) of June said that all tokens are provided with dollars in bank accounts.

However, FSS indicated in the report that the procedures performed by it “are not intended to provide guarantees and should not be confused with an audit”, since the work was carried out “without observing auditing and accounting standards”.

On Monday, October 15, the USDT price dropped to a 18-month low at $ 0.92. At the time of writing, the price has recovered and is about $ 0.97.