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   231

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.

Tether to Have Account at Bahamas

Tether reported on cooperation with Deltec Bank at Bahamas
02 November 2018   166

The issuer of the USDT, Tether Limited officially confirmed its cooperation with Deltec Bank, a small financial institution from the Bahamas. The company also submitted a letter, on the basis of which it has sufficient funds to ensure the total volume of issued USDT tokens.

Tether Limited is pleased to confirm that it has established a banking relationship with Deltec Bank & Trust Limited (“Deltec”), a 72-year-old financial institution with headquarters in the Commonwealth of The Bahamas.
 

Tether Team

It is also noted that Tether Limited was accepted as a Deltec client after full company check. Allegedly, it includes an analysis of processes, policies and legal compliance, a complete check of information about shareholders, final beneficiaries and managers of Tether Limited, as well as an assessment of the company's ability to maintain a binding to the US dollar at any time and its reserve management.

This process of due diligence, was conducted over a period of several months and garnered positive results, which led to the opening of our bank account with this institution. Deltec reviews our company on an ongoing basis.
 

Tether Team

Tether also states that the company is registered with the Financial Crimes Enforcement Network (FinCEN) and the US Department of the Treasury and adheres to the highest standards in anti-money laundering and terrorist financing procedures.

The message is accompanied by a reference to a letter from Deltec Bank, which states that at the end of the business day on October 31, 2018, the Tether account had a cash value of $ 1,831,322,828.

Thus, based on this letter and taking into account the current capitalization of USDT ($ 1.772 billion), Tether really has sufficient funds to ensure the total volume of issued tokens. The question of whether they were provided at all stages of the company, remains, however, open.

It also draws attention to the fact that in the letter, contrary to the accepted practice, there is no signature of any official of the bank.