Tether Holdings Limited has responded to The Wall Street Journal over an article it claims spread “misinformation” about the stablecoin issuer’s profitability, creditworthiness, and accounting standards.
In an article on August 29, the Journal stated that Tether could be considered “technically insolvent” if its assets fell by just 0.3%. That conclusion was drawn from Tether’s reported assets and liabilities as of August 25. A week earlier, Tether released its latest statement showing $67.7 billion of declared assets versus $67.5 billion of liabilities.
The August certification was carried out by BDO Italia, the Italian branch of the international accounting firm BDO Global. As Cointelegraph reported, Tether hired BDO Italia to increase the legitimacy and transparency of its claims. In the process, the stablecoin issuer increased the frequency of its reports from quarterly to monthly.
“The article seeks to discredit the work that Tether has put into transparent and honest communication to the public,” Tether said in an Aug. 30 blog post. “BDO, a very reputable and independent Top 5 audit firm, is not a “Tether accounting firm”, as erroneously written by the WSJ.”
Lots of milking pic.twitter.com/ZBJnmvai9f
– Paolo Ardoino (@paoloardoino) August 29, 2022
In the post, Tether refuted the Journal’s claims that its exposure to short-term US Treasury bills is an unsafe strategy. Tether also responded to assumptions that his business is not profitable:
“According to our consolidated reserves report, Tether has never disclosed any capital despite being profitable for several years. This same report has been deemed appropriate by major stakeholders and has been accepted by the NYAG. Perhaps the WSJ has confused Tether with some of your competitors.
As the oldest and largest stablecoin issuer in the cryptocurrency market, Tether is no stranger to criticism. Critics have long claimed that Tether’s USDT stablecoin is not adequately backed by reserves. Others have criticized the company’s use of commercial paper as backing. On June 27, The Wall Street Journal reported that short sellers have been “raising their bets against Tether” following the collapse of the Terra Luna ecosystem.
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