Tether, the company behind the world’s largest stablecoin, has responded harshly to comments in an article published by The Wall Street Journal this week, in which the WSJ accuses the company of not doing real audits on its financial and accounting situation.
The Tether Holdings Ltd. team accused the WSJ of misinforming the public and discrediting its work in front of its users through a press release published on its blog. “BDO, a very reputable and independent Top 5 audit firm, and is not a ‘Tether accounting firm,’ as erroneously written by the WSJ.”
It further said that the Italian accounting firm “will continue to have unrestricted access to any relevant information to perform their work.” It added that “Tether will continue to share its attestations, despite continuous attempts by the media to disparage its reputation and that of top-ranking firms like BDO that are working with digital asset companies.”
On the Flipside
Tether said that “rivals have allowed mainstream consumers to believe they are ‘safer’ because they have been ‘audited,’ but no such audit has occurred.”
The statement also mentions that “any reference to a margin of failure existing in Tether’s business model assumes that the WSJ subscribes to the false short-seller narrative which suggests that short-selling Tether is even remotely possible.”
For some time now, Tether has exposed a conspiracy against it. In its response to the WSJ, the company also referred to the hedge funds that it accuses of creating pressure to “harm” the liquidity of the cryptocurrency. It said they represented “a fundamental misunderstanding of both the cryptocurrency market and Tether.”
Finally, Tether highlighted having been able to “easily redeem over USD 16B of the issued token in recent months.” It says it has kept the asset allocation in line with previous months and significantly reduced its exposure to commercial paper.
Why You Should Care
Tether plans to issue monthly financial reports starting next year, something its competitors are already doing, according to the WSJ article.
“Things are moving slower than … we would like,” the WSJ article concludes, citing Paolo Ardoino, CTO of Tether Holdings Ltd.
You might also like to read this other recent article related to the financial situation of the stablecoin:
Tether (USDT) Reserves Fell $16 Billion in Q2
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Source: Cryptocurrency - investing.com
