Cryptocurrency Tether (USDT) has been long debates on the veracity of the statement that tokens USDT supported by a corresponding amount in dollars. It seems that the Tether was finally able to prove the security tokens dollars. However, for one day only.
According to an interview with the chief lawyer of the Tether Stuart Chegaram, law firm, Freeh Sporkin & Sullivan LLP for several weeks had access to two Bank accounts of the Tether, which as of June 1 enough dollars to provide all tokens USDT. However, the report covers only one day, and carried out by his company, which does not have the right to engage in audit.
Bank records are not provided, since we are talking about breach of confidentiality, said, Hegner, adding that the firm has access to them.
The law firm of Freeh Sporkin & Sullivan LLP, co-founder of the former head of the FBI Louis Frech, commented:
“FSS is not an audit firm and has not performed the above analysis using generally accepted accounting principles. The FSS without further investigation suggested that the staff of the Bank providing the evidence, was empowered to guarantee their truthfulness.”
According to a report released Tether the number of USDT as at 1 June amounted to 2.54 billion, and the company’s Bank accounts kept of 2.55 billion dollars.
As for why there have been no official audit of Hegner said that large accounting firms will not work with cryptocurrencies:
“The major audit firms will not work with clients dealing in cryptocurrency. The fact that the existing accounting standards obsolete, and without them it is impossible to conduct a full audit. We have calculated the FSS best alternative in this situation”
Tether and cryptocurrency exchange Bitfinex, which have a single leadership, on 6 December 2017 received subpoenas from US regulators, who wished to clarify the situation with a common CEO.
At the end of may Tether released another 250 million US dollars by reviving the issue on their dollar reserves. Then the study conducted by the University of Texas, has again drawn attention to Tether, because the company was accused of manipulating the price of Bitcoin.
In response to claims of manipulation of the General Director of the Tether tried to refute the charges:
“Despite speculation, we have always maintained that the Tether is maintained dollar reserves, which amount to even more than necessary to ensure the USDT in circulation. And we are happy to conduct an independent review to answer some of the questions posed by the community.”