Consumers’ Research’s Will Hild Puts Spotlight On Non-Audited Tether
Consumer protection organization Consumers’ Research has launched an ad campaign targeting Tether, a blockchain platform that has yet to undergo an audit. The campaign has labeled Tether as “the next FTX.”
According to a spokesperson for Consumers’ Research, Tether has been thriving without undergoing audits and has been evading fraud investigations. This information was shared alongside a link to a website called TetheredToCorruption.com.
Consumers’ Research, led by Executive Director Will Hild, has accused Tether of engaging in illicit crypto activities such as financing illegal crypto funding, supporting organized crime, participating in money laundering, terrorist financing, and evading sanctions. These claims are featured on the TetheredToCorruption.com website.
Hild stated, “Given these warning signs, we fear that Tether may very well be the next FTX. Consumers should be cautious of any so-called stablecoin that refuses to properly certify that they actually hold the assets they claim.”
The lack of transparency regarding Tether’s asset reserves has been a long-standing concern. The company, founded by Brock Pierce in 1994, has never undergone an official audit. Instead, it relies on attestations typically executed by a hired financial firm under the purview of the examined organization.
Despite these concerns, Tether announced that it had earned a record-breaking $4.52 billion in profit for the first quarter of 2024, with a total net worth estimated at $11.37 billion. The company’s CEO, Paolo Ardoino, emphasized Tether’s commitment to transparency, openness, and conservative risk management.
However, a January 2024 Fortune report revealed that Tether still had an estimated $5 billion in total debt. When asked why the blockchain platform had not undergone a formal audit, Ardoino claimed that “none of the big four” accounting firms would agree to one due to reputational risks.
The implications of Tether not having the assets it claims would be devastating not only for the company itself but for the entire digital asset industry as a whole. Follow Us on Google News.
