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   914

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.

Tether to Issue Commodity Backed Stablecoin, - Dong

Zhao Dong is major investor and shareholder of the Bitfinex
03 September 2019   229

Bitfinex exchange major investor Zhao Dong told Cointelegraph that Tether plans to release a USDT stablecoin option, backed by a basket of commodities such as gold, oil and rubber.

According to an insider, the purpose of issuing such a token is to reduce the risks associated with the need to store large amounts in banks to ensure it. Dong also stressed that the flagship stablecoin USDT is not 100% secured with a fiat dollar:

Tether is fully backed by reserves, out of 4 billion existing USDT about 3.35 billion are now in securities and 650 million are being lent to Bitfinex. Bitfinex has been raising 1 billion with it's LEO token IEO and could easily pay back Tether any time (as a matter of fact it already paid 100 million last month).
 

Zhao Dong

Shareholder, Bitfinex

Dong is confident that the level of provision with USDT reserves is generally sufficient to consider this stablecoin reliable.

Even if you don't calculate this 650 million as reserves the total amount backed by USD is 83.75% (3,350/4000) and not 72% as fake news are reporting.
 

Zhao Dong

Shareholder, Bitfinex

 Zhao Dong also remembered Tether’s plans to issue CNHT stablecoin linked to the renminbi and with reserves on offshore accounts.

CNHT will not interfere with PBOC [People’s Bank of China} capital control policy because CNH is different than CNY, as it's already an offshore product. On the contrary CNHT will help China to expand the adoption of CNH for international settlements.
 

Zhao Dong

Shareholder, Bitfinex

At the end of April, the New York Attorney General's Office charged Bitfinex with the fact that, having suffered a loss of $ 850 million, it withheld this fact, partially using the funds of Tether, the stablecoin issuer affiliated with it, to cover the damage. Later it turned out that these funds were frozen in the bank accounts of the Panamanian processing service Crypto Capital.