- Tether has accused the Wall Street Journal of peddling “disinformation” in a recent article
- The outlet focused on the lack of a full audit by Tether, despite the recent deal with BDO
- Tether argued several points, but failed to address the audit issue
Tether has responded to criticism from the Wall Street Journal over its lack of a full independent audit by stating that the outlet is peddling “unsubstantiated conclusions”. Tether announced recently that it has taken on accounting firm BDO to undertake monthly attestations over its backing, but the lack of a full audit is still cause for concern among many, including the Wall Street Journal, which on Saturday cited numerous sources who said that the attestations weren’t up to the standard demanded by many in the space.
Wall Street Journal Zeroes in on Audit Issue
Tether has been under pressure to have a full, independent audit of its finances ever since its huge growth in 2017, to which it responded (at the request of the New York Attorney General) with quarterly breakdowns of its reserves.
However, the Wall Street Journal cited several people, including John Reed Stark, former head of internet enforcement at the Securities and Exchange Commission (SEC), as saying that these reports do not provide enough transparency.
Tether Hits Back
Tether hit back at the claims, saying that the piece was another example of “false information…being weaponized to cause harm across the globe,” and stating that it had a duty to “clarify the facts for readers”.
Tether began by reinforcing the fact that BDO was not its own accounting firm as it said the Wall Street Journal had suggested, before setting the outlet straight on a number of other issues:
- U.S. Treasuries have been “the premier safe asset worldwide for the past several decades” and so carrying a three month supply is not “unsafe”
- Assumptions that Tether is unprofitable are “false”
- Focusing on Tether of all the stablecoins is further proof of “an agenda by the publication” to hurt Tether
- Tether’s disclosures are “the most honest and transparent in the market”
- The idea that it is potentially profitable to ‘short’ Tether represents a “fundamental misunderstanding of both the cryptocurrency market and Tether”
Tether concluded by saying that it has never missed a redemption, but notably steered clear of answering the central question posed by the piece – wen audit?
