Tether’s Reserves are ‘Fully Backed,’ Company Cites Another Audit

Forum 2 years ago

Tether’s Reserves are ‘Fully Backed,’ Company Cites Another Audit

Tether has released another public assurance opinion made by an audit provider service called Moore Cayman – yet, the crypto community doesn’t seem convinced.

Tether has yet again issued another public opinion by Moore Cayman, a provider of audit services that reassures USDTs are “fully backed by reserves.” However, the company has failed to disclose the precise nature of the reserves it’s referring to, which has raised a few eyebrows in the community.

Another Public Opinion By Moore Cayman

The report says the Cayman Island-based audit provider has obtained “sufficient and appropriate” evidence to base their assurance opinion. It conducted an attestation in accordance with the ISAE 3000 (International Standard on Assurance Engagements (revised)), among other standards for ethical research and guidance for audits and historical financial information.

“Those standards require that we plan and perform the attestation examination to obtain reasonable assurance about whether the assertions by the management of Tether Holdings Limited in its CRR are fairly stated, based on our investigation of the balances set out therein, in all material respects.” – Reads the report.

The paper findings as of 30 June 2021 were:

• Consolidated Total Assets amount to $62,773,190,075.

• Consolidated total liabilities amount to $62,628,932, of which $62,610,829,196 relates to digital tokens issued.

• The group’s consolidated assets exceed consolidated liabilities.

• The group’s reserves held for its digital assets issued exceeds the amount required to redeem the digital asset tokens issued.

Concerns About Tether’s Claims

Paolo Ardoino, CTO at Tether, said the stablecoin provider is committed to providing transparency and accountability for its customers and will continue to present regular updates. It’s unknown if Moore Cayman will be conducting those assurance opinions.

“As an industry leader, we understand the importance of transparency and accountability. Our most recent assurance opinion from Moore Cayman again confirms Tether is fully backed.

A healthy and conservative portfolio with an emphasis on liquidity continues to fuel our growth and confidence in our innovative offerings.” Said Ardoino.

Yet there have been numerous concerns about the legitimacy of Tether’s claims. USDT is supposedly backed by a basket of liquid assets – yet they fail to disclose where the commercial papers come from due to “privacy reasons.” 

Fully backed… by the opinion of some shady company from the Cayman Islands with 3 employees… ?

Yes, very believable! ?

— Mr. Whale (@CryptoWhale) August 9, 2021