Tether, the issuer of the largest stablecoin USDT, has once again faced allegations of non-transparency.
US consumer protection group Consumers' Research released a report yesterday warning about stablecoin issuer Tether. Consumers' Research criticized Tether for its lack of transparency regarding its US dollar reserves.
Consumers' Research analysts also argued that Tether published false transparency reports and failed to conduct a full audit of the dollar reserves that Tether allegedly backs USDT.
Analysts noted that Tether has taken steps to increase transparency, but the company has never been audited by a major accounting firm.
“Tether has failed to deliver on its promise to provide full oversight of its dollar reserves. This lack of transparency contradicts expectations of financial accountability, especially for a stablecoin that is claimed to be backed 1:1 by the US dollar.
“Tether has previously committed to publishing full reserve audits on multiple occasions, but these promises have yet to be fulfilled. The absence of a full audit report has fueled skepticism and uncertainty among investors and regulators.”
Analysts argued that the lack of transparency at Tether is similar to the situation that led to the collapse of FTX and Alameda Research.
Analysts recently accused Tether of “doing business with malicious actors” and failing to block illicit entities that use USDT to circumvent international sanctions.
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