Tether’s Figures Questioned, People Demand for an Independent Audit

Moving away from today’s pitfalls, refreshing news emerged from the Tether camp. This news has generated another hot topic on Twitter which has made people insist that Tether employ the help of independent auditors. 

Tether’s latest asset assurance report indicates that reserves held exceed liabilities. Published on February 21, 2022, Tether Holding Limited made available its quarterly assurance opinion. The report shows a 21% decrease in its commercial paper holdings over the previous quarter.

The document claims that as of December 31, 2021, total assets recorded were at least $78.7 billion while its total liabilities amount to $78.5 billion. Out of this, $78.5 billion relates to digital tokens issued. This implies that the group’s reserves held for its digital tokens issued exceed the amount required to redeem the digital tokens issued.

Also, the publicized report shows an increase in the group’s investments in money market funds and treasury bills. Similarly, it connotes a rise of its A-1+ commercial paper holdings over the previous quarter.

Despite Tether’s intentions to come off as transparent and reliable, many netizens do not seem convinced by their report. In fact, Many people claim Tether’s USDT is not wholly backed by US dollar reserves. For this reason, people are still asking for an independent audit.

The call for an independent audit stems from the previous irregularities and loopholes sniffed out by independent investigators from prior reports. This has created a lack of trust for any report published by Tether. Moreover, many believe that Tether is not 100% backed by cash as they assert.

Besides, Tether has once been hit with a $41 million fine from the United States Commodity Futures Trading Commission (CFTC)  for lying about its dollar reserves.