Without any official audit release since Tether’s beginning, the company continues to sidestep the release of any transparent financial details, Forbes reported on March 14. In fact, this marks the third time that the company has creatively released financial data that it acknowledges is not from professional audits.
Take, for example, the language used in Tether’s most recent update on its website, where it removes the statement that its reserves are 100-percent backed by currency reserves: “Every tether is always 100 percent backed by our reserves, which include traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities (collectively, “reserves”). Every tether is also 1-to-1 pegged to the dollar, so 1 USDT is always valued by Tether at 1 USD.” Tether’s previous statement read: “Every tether is always backed 1-to-1, by traditional currency held in our reserves. So 1 USDT is always equivalent to 1 USD.” In addition, Tether’s language has changed from a claim that its reserves are subject to professional audits, to a claim that they are subject to professional verifications.
As suspicions on the content of Tether’s balance sheet grew, Bloomberg reported in December that Tether had evidence showing that its reserves matched its coin distribution for the month of July 2018. Bloomberg reported that it had seen select bank statements that suggested cash reserves were present.
Earlier in 2018, the US Commodity Futures Trading Commission investigated Tether’s cash reserve supply, issuing a subpoena for further information.
Unsurprisingly, analysts are cautious about Tether’s reserves. “They’re saying they can break that out into whatever they want. They could have a receivable on their book that owes them some money from another exchange and count that as an asset against their own Tether,” Kara Haas, a CPA cryptocurrency and blockchain expert said, according to MarketWatch.
In data reported by Blockspur, a blockchain data analysis firm, over 30 percent of Bitcoin transactions on exchanges are estimated to involve Tether. - 2 hours ago