The often criticised and controversial company Tether shared a “transparency update” via twitter this morning. They announced that earlier this year Tether engaged the law firm Freeh, Sporkin & Sullivan LLP (FSS) to review bank account documentation and perform random inspections of the corresponding Tether in circulation and reserves. FSS, who Tether says was granted authorization to perform an unlimited number of examinations of these bank accounts, was also in contact with the institutions directly and reviewed all of the available documentation. Before submitting its review and report, FSS conducted in person interviews with Tether personnel including Chief Compliance Officers as well as operations management.

In Total, over $2.5 billion USD was accounted for. The full report is available here.

Rounding out the announcement, Tether acknowledged a lack of “engagement” with the greater community and vowed to improve upon this in the future.

TAKEAWAYS

While not an audit per se, this should definitely calm down at least some of Tether’s critics. They’ve maintained form day 1 that all circulating USD Tethers are backed 1:1 by USD reserves. It’ll be interesting to see if a full audit will be released at some point during 2018. Tether has been an important and crucial part of the on-boarding infrastructure from Fiat currencies to Bitcoin.

 

 

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