Concerns have been raised by the Consumer Watchdog about Tether’s Reserve Transparency.
Consumers’ Research put out a negative study on September 12 about Tether, the company that makes the USDT stablecoin. The story raises serious worries about Tether’s lack of openness about its US dollar reserves, which are meant to back USDT.
According to the watchdog group, Tether has broken many promises by failing to provide a full audit of its dollar funds from a reputable accounting company. The study says that this lack of openness is similar to problems that led to the failure of FTX and Alameda Research.
As a way to bring notice to these issues, Consumers’ Research has sent an open letter to all 50 U.S. governors, run radio ads, and created a website with more information about its research.
The report also says that Tether failed to stop illegal use of USDT and worked with shady groups.
Because of this, Tether has taken steps to fix these problems. Cantor Fitzgerald’s CEO, Howard Lutnick, confirmed in January that Tether has the funds it says it has. Lutnick is in charge of the company’s U.S. securities holdings. Also, in July, Tether hired Philip Gradwell, who used to be the head economist at Chainalysis, to make things clearer and make reports on how USDT is being used. These papers are for businesses and government officials.
Also, in August, Paolo Ardoino, CEO of Tether, said that the company had helped police recover $108.8 million in USDT that was tied to criminal actions since 2014. Tether and Tron recently formed the “T3 Financial Crime Unit,” whose job it is to find and stop illegal USDT trades on the Tron network, which is the biggest blockchain network for dealing USDT.
