Tether said it was able to quickly redeem more than $16 billion of the issued token over the past months.
Tether Holdings Limited has reacted to a report by The Wall Street Journal that Tether could be “technically solvent” if it falls just 0.3%. The WSJ concluded possible insolvency for Tether shortly after the company posted its assets and liabilities. And before then. Tether also released its latest attestation that shows reported assets of $67.7 million over $67.5 billion in liabilities. Tether had hired accounting firm BDO Italia for the attestation in August as it works towards transparency.
The WSJ based its report on the uncertainty of the Tether reserves. The journalists also referred to the long-expecting, much-delayed audit underway since 2017. The business-focused news company stated that a “thin cushion of equity” could be problematic if Tether’s liabilities exceed its assets.
“A 0.3% fall in assets could render Tether technically insolvent – a development that skeptics warn could reduce investor confidence and spur an increase in redemptions.”
Tether Responds to Disinformation in Wall Street Journal Article
Tether said The Wall Street Journal article is “disinformation” that contains numerous unconfirmed conclusions. The company issued a blog post to address the news, emphasizing the need to clarify facts for readers in a world where false information is a destructive weapon globally. Plainly, Tether said The Wall Street Journal discredits its transparency effort. In its response, the company wrote:
“The article seeks to discredit the work that Tether has put into transparent and honest communication to the public. BDO, a very reputable and independent Top 5 audit firm, is not a “Tether accounting firm,” as 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.”
In a further attempt to tackle the article’s claims on T-Bills being an unsafe asset, Tether said the US Treasuries is the longstanding safe asset over time. The company added that it is untrue for WSJ to assume its business is not profitable. Referring to its Consolidated Reserves Report, Tether said it has never disclosed any equity even as it has always been seeing profits. It added that The Wall Street Journal has probably confused Tether with some of its competitors.
In addition, Tether said it was able to quickly redeem more than $16 billion of the issued token over the past months. The company promised to continually be transparent in compliance with the International Financial Reporting Standards principle.
In concluding its response to The Wall Street Journal article, Tether reiterated its commitment to leading the stablecoin market.
Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience.
Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.
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