- Tether has hired BDO Italia for its quarterly attestations
- The stablecoin issuer called the move “the next step in the company’s path toward a complete audit.”
- Critics say that until an audit it produces, words are meaningless
It’s been eight years in coming, but Tether might finally be on the verge of offering a genuine third-party audit for its reserves. The stablecoin issuer yesterday announced that the Italian wing of the top five accounting firm will take care of its quarterly attestations with a view to moving to monthly ones as part of its plan for full transparency. However, those desperate for a proper, legit mass audit will be disappointed – this process will only be a “next step in the company’s path toward a complete audit.”
Tether Continues to Promise “Full Audit”
Tether has been offering quarterly attestations to the Office of the New York Attorney General (NYAG) ever since the two legal combatants settled their case last February, with the very first onne revealing that Tether’s then $42 billion market cap was only backed by cash to the extent of 3.87%. However, this and following updates have never caused the NYAG any apparent issues, and the company has been allowed to carry on its merry way.
However, in a sign that it wants to be more open about its situation (and bearing in mind that USDC is threatening to replace it as the biggest stablecoin), Tether has been promising the first “full audit” of its reserves after years of saying it didn’t need one. This now looks to be coming to fruition as the company released a statement yesterday which said that it had hired BDO Italia for its quarterly stock take and would use it on a monthly basis going forward.
Critics Take Occam’s Razor to Developments
Tether said that the decision to work with BDO organisation “represents its promise to deliver considerable transparency for those holding Tether tokens, providing updates about issued tokens and reserves on a daily basis” and added that the relationship “aligns with Tether’s dedication to transparency and is the next step in the company’s path toward a complete audit.”
While this seemed like good news, famous critics weren’t having it:
Bitfinex/Tether have gone to three ‘auditors’ now, and not one of them produced an audit for them.
At this rate, we’re likely going to find Bigfoot riding the Loch Ness monster wearing a orange Tuxedo, before Tether ever produces a legitimate audit. pic.twitter.com/ApxVQoNFG0
— Bitfinex’ed 🔥 Κασσάνδρα 🏺 (@Bitfinexed) August 18, 2022
Guess what? No audit from Tether! Just monthly attestations instead of quarterly ones. pic.twitter.com/mXpckMFuTs
— Concoda (@concodanomics) August 18, 2022
This reaction is understandable given how Tether has done everything in its power not to get an audit in the past, and a “next step” isn’t really that much to celebrate. Until one is actually announced, breath will continue to be held and the threat of a Tether-shaped black swan will continue to hover over the space.
