An article was published by the Wall Street Journal at the end of the previous week regarding the concerns related to the audit policy of Tether. In that article, John Reed Stark (the ex-Head of Internet Enforcement operating under the Securities and Exchange Commission) was referred to as saying that there is a requirement for Tether to have an audit like a corporate colonoscopy, informing investors about everything related to their reserves.
Tether Refutes Accusations Raised by the WSJ
While responding to the allegations, the stablecoin issuer noted in the exclusive blog post thereof. It mentioned the intention to conduct audits. Nonetheless, it also categorized the report by the WSJ as a list of unconfirmed findings. It also asserted that the journal’s article was aimed at disregarding the entirety of the efforts put by Tether into an honest and transparent interaction with the community.
Formerly in July, the accountants had been shifted from a minor company based in the Cayman Islands to BDO Italia (the worldwide BDO network’s Italian participant). Nonetheless, the WSJ cited the independent as well as popular audit company named Top 5 to work as the accounting firm for Tether. While answering this, Tether claimed that the Wall Street Journal has mistakenly raised those accusations.
It added that BDO will keep on having continuous access to any information required for their operations and that Tether will consistently share the attestations thereof, notwithstanding the constant media-based efforts to belittle the reputation of the platform as well as of the famous companies such as BDO that operate in collaboration with the firms dealing with digital assets. Tether, in its statement, additionally took another step to elucidate that the Treasury Bills’ status has been that of the leading safe assets during a few recent decades.
As per the stablecoin issuer, their business is profitable, and thinking otherwise is wrong. It also touched on the rest of the misstatements noted in the report of the WSJ. Tether’s statement ended up by bringing to the front that the disclosures of the platform have been completely transparent as well as honest in the industry. According to the stablecoin issuer, everyone is aware of the thing that no audit has previously been conducted by them and that they are endeavoring to have one.
WSJ’s Accusations Have No Impact on Tether’s Transactions
Up till now, the transactions on the Tether’s venue have not been impacted by the accusations put forth by the Wall Street Journal. On Wednesday – according to the data provided by Glassnode – the figure of deposits made to the exchanges witnessed a unique 3-year low. The respective incident points out that either the members have a considerable stock of Tether tokens or they are leaving this stablecoin to try the others for their HODLings. Hence, an inference can be that the members of the market are not at the moment contemplating a dumping spree for Tether.