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   334

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.

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   143

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.