Tether Has Sufficient USD to Support Crypto, Law Firm Says in Unofficial StatementJune 22, 2018
Tether’s long-contested statement that its crypto is supported by the right amount of dollar holding has been apparently verified, June 20 Bloomberg’s report.
In a dialogue with Stuart Hoegner, general counsel of Tether, he said that Freeh Sporkin & Sullivan LLP, a US based law firm had access to Tether’s bank account for weeks. They released the dollar holding as of 1st of June, even if not as part of an authorized assessment.
He refused to name the two bank accounts because of privacy issues. Hoeger said that the company is given access to banks statements and workers, and contact with the executives of Tether.
Louis Freeh, ex-FBI director and co founder of Freeh Sporkin & Sullivan LLP, noted in their report that their conclusions are specific to the close of the company on 1st of June 2018. He added that FSS isn’t an accounting company and didn’t perform the above review and confirmations utilizing Generally Accepted Accounting Principles.
According to Hoegner, the amount of USDT issues was equivalent to USD2.54 bln on June 1. Coinmarketcap statistics show that there’s now a total of approximately 2.8bln USDT currently in circulation. The reason why an official audit wasn’t conducted is that the law firm wouldn’t take on customers who deal with digital currencies.
Tether and Bitfinex, a renowned crypto exchange, which shares a CEO, had allegedly received subpoenas from US regulators on 6th of December last year, with the motion for them still unclear. Again the cryptocurrency fell under inspection from the crypto community after dissolving their relationship with an auditor prior to the release of an official audit.
But, in February, an investigation of Bitmex showed that Tether could have enough fund reserves, perhaps in a bank in Puerto Rico, to match its coin issuance.
Last week of May, Tether had issued another 250m USDT, repairing the issue of their dollar reserves. Then, a study released this month by Texas University again brought Tether to the hot seat. Tether is blamed for both the crypto and connected digital currency exchange Bitfinex for manipulation of BTC price in 2017.
In reply to the claims of BTC price manipulation, J.L Van de Velde CEO of Tether told Bloomberg that the allegations were not true. In spite of the allegation, Tether has consistently stated that they are supported by USD reserves at or exceeding the circulation at a given time. They are also fortunate to have independent verification of this to clarify some of the concerns posed by the public. Alleged Bitcoin manipulation of Tether had brought down BTC futures prices 55% this week.