- Tether released an audit report with a statement from the accounting firm Moore Cayman to verify that the stablecoins are fully hedged.
- The stablecoin issuer will regularly publish attestation reports in the future.
- Periodic reporting was required as part of Tether’s settlement with the New York attorney GeneralOffice.
The company behind the world’s largest stablecoin Tether (USDT), Tether Holdings Limited, recently released a report to confirm that its tokens are backed by its U.S. dollar reserves.
Tether to provide quarterly attestation reports
Tether recently shared a statement releasing the company’s consolidated reserves report along with an audit report from accounting firm Moore Cayman. The stablecoin issuer confirmed that it had $ 35 billion in assets in support of its USDT tokens last month.
Moore Cayman’s document showed evidence that Tether had total assets of $ 35.28 billion versus total assets of $ 35.15 million, meaning the company had more reserves than tokens issued. The auditing firm’s report states:
In our opinion, the CRR, as drawn up by the management of Tether Holdings Limited Group in February 2021 at 11:59 p.m. UTC, is presented in accordance with the criteria set out therein and fair in all material respects.
Tether Holdings stated that the stablecoin has always been fully secured and the company is committed to being among the most transparent stablecoin.
The stable coin company has long been asked about its reserves and whether the price of Bitcoin and other cryptocurrencies has been inflated. Stuart Hoegner, the general counsel of Tether and Bitfinex, said Tether intends to counteract future claims by regularly issuing certificates in the future.
However, Tether’s report made no mention of where or how his reserves are being held. These were concerns raised by Tether critics in the past. In contrast, monthly attestation reports from USDT rival USD Coin – supported by Center Consortium, Circle and Coinbase – mention that US dollar collateral is held in custody accounts.
Tether paid a $ 18.5 million fine in February
Tether and Bitfinex reached an agreement with the New York attorney general in February on the landmark case against the stablecoin company. Authorities alleged Tether misrepresented the level of security for USDT coins through collateral.
The New York Attorney General’s lawsuit against the two companies was based on an understanding that USDT was not fully backed by fiat collateral at certain times.
In addition to paying $ 18.5 million for damage to New York State, Tether was required to regularly report on its reserves and transactions between the stable coin issuer and the Bitfinex crypto exchange.
Reports on the company’s fiat and property reserves would have to be filed for the next two years, and the two companies would have to cease customer support in New York.
Tether was pleased to have settled for a fine of $ 18.5 million, considering all existing USDT exceeds $ 35 billion. The company also did not admit any wrongdoing.
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