The Wall Street Journal released a report at the tail end of last week that expressed concern about Tether’s audit procedure. The Securities and Exchange Commission’s previous head of internet enforcement, John Reed Stark, was mentioned in the article as saying,
“Tether needs an audit that’s akin to a corporate colonoscopy, that tells investors everything about what’s in their reserves.”
The stablecoin issuer clarified that it plans to conduct audits in its most recent blog post in response to the same concern. But it continued by characterizing the WSJ piece as a “series of unsubstantiated conclusions.” It further stated,
“The article seeks to discredit the work that Tether has put into transparent and honest communication to the public.”
The stablecoin issuer had changed accounting firms back in July, moving from a small Cayman Islands-based business to BDO Italia, the Italian affiliate of the larger BDO network. However, the trustworthy and impartial Top 5 audit firm was referred to as a “Tether accounting firm” by the WSJ. The token team responded by claiming that the same had been “erroneously written by the WSJ.”
“BDO will continue to have unrestricted access to any relevant information to perform their work and 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.”
The stablecoin issuer also clarified in the statement that Treasury Bills have been the “premier safe asset” for many years. In addition, it stated, “to assume that our business is unprofitable is false,” and went on to refute several inaccuracies in the WSJ article.
The announcement from the stablecoin issuer concluded by emphasizing,
“Tether’s disclosures have been the most honest and transparent in the market – everyone knows that we have not had an audit and they know we are working towards one.”
Tether remains unaffected
According to Glassnode data, the volume of deposits to exchanges fell on Wednesday to a fresh 3-year low. The same suggests that people are either HODLing other assets with their stablecoin holdings or having their Tether stashes zipped. Overall, it can be concluded that market players aren’t currently on a Tether dumping rampage.
Furthermore, despite the skeptics, the token’s team claims to be dedicated to continuing to be one of the market’s top stablecoin and to keep demonstrating transparency.