USDT Issuer Tether Receives Warning!
Global ratings agency S&P Consumers’ Research has issued a warning report on USDT issuer Tether.
The report, published on September 12, criticized the stablecoin company for its lack of transparency regarding its US dollar reserves. The consumer advocacy group claimed that Tether had failed to conduct a full audit despite repeated promises to audit its reserves.
The authors of the Consumers’ Research report likened Tether’s lack of transparency about its reserves to the situation that led to the collapse of#FTXand Alameda Research.
The research report, which stated that Tether had failed to conduct a full audit of its dollar reserves, also alleged that the company had collaborated with bad actors.
The report, sent to every state governor in the United States, cited Tether’s lack of transparency, cooperation, radio advertising, and a dedicated website supporting complaints.
The consumer advocacy group accused Tether of failing to prevent illegal entities from using USDT to evade international sanctions. The report gave Tether a stability score of 4 out of 5, with 5 being considered a poor score.
Howard Lutnick, CEO of Cantor Fitzgerald, which manages Tether's US securities portfolio, gave the company behind#USDTa guarantee in January. "From what we've seen and we've worked very hard on, they have the funds that they say they have," Lutnick said.
The stablecoin issuer hired former Chainalysis chief economist Philip Gradwell in July to increase transparency in reports on USDT usage. The reports will be made available to U.S. regulators and investors.
Tether#CEOPaolo Ardoino reported that his company has seized 108.8 million USDT in accounts linked to illegal activity since 2014.